Etsy vs Jumia Technologies Which Is Superior?

Etsy and Jumia Technologies are two popular e-commerce companies that have gained significant attention from investors. Etsy, known for its unique handmade and vintage goods, has seen a steady rise in its stock price due to its strong growth in active buyers and sellers. On the other hand, Jumia Technologies, often referred to as the "Amazon of Africa", has faced challenges in its stock performance due to operational issues and increased competition in the African e-commerce market. Both companies offer investors unique opportunities and risks to consider in the ever-evolving e-commerce industry.

Etsy or Jumia Technologies?

When comparing Etsy and Jumia Technologies, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Etsy and Jumia Technologies.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Etsy has a dividend yield of -%, while Jumia Technologies has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Etsy reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Jumia Technologies reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Etsy P/E ratio at 25.49 and Jumia Technologies's P/E ratio at -5.76. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Etsy P/B ratio is -10.48 while Jumia Technologies's P/B ratio is 5.44.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Etsy has seen a 5-year revenue growth of 3.72%, while Jumia Technologies's is -0.21%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Etsy's ROE at -43.01% and Jumia Technologies's ROE at -161.50%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $57.14 for Etsy and $4.46 for Jumia Technologies. Over the past year, Etsy's prices ranged from $47.10 to $89.58, with a yearly change of 90.19%. Jumia Technologies's prices fluctuated between $2.88 and $15.04, with a yearly change of 422.22%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.