JD.com vs Jumia Technologies Which Is More Promising?

JD.com and Jumia Technologies are two prominent e-commerce companies that operate in different parts of the world. JD.com is a Chinese e-commerce giant with a significant presence in Asia, while Jumia Technologies is known as the "Amazon of Africa," operating in multiple African countries. Both companies have experienced significant growth in recent years, but their stocks have fluctuated due to various factors such as market conditions, competition, and regulatory issues. Investors looking to capitalize on the booming e-commerce industry may find opportunities in both JD.com and Jumia Technologies stocks.

JD.com or Jumia Technologies?

When comparing JD.com 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 JD.com 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. JD.com has a dividend yield of 2.04%, while Jumia Technologies has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. JD.com reports a 5-year dividend growth of 0.00% year and a payout ratio of 19.32%. 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 JD.com P/E ratio at 11.81 and Jumia Technologies's P/E ratio at -5.48. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. JD.com P/B ratio is 1.80 while Jumia Technologies's P/B ratio is 5.18.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, JD.com has seen a 5-year revenue growth of 1.12%, while Jumia Technologies's is -0.21%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with JD.com's ROE at 15.45% 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 $36.92 for JD.com and $4.31 for Jumia Technologies. Over the past year, JD.com's prices ranged from $20.82 to $47.82, with a yearly change of 129.68%. 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.