Jumia Technologies vs Alibaba Which Is a Smarter Choice?

Jumia Technologies and Alibaba are both leading e-commerce companies, but they operate in different regions and have distinct business models. Jumia is often referred to as the "Amazon of Africa," while Alibaba is a giant in the Asian market. Investors looking to capitalize on the booming e-commerce industry may consider these two stocks for their portfolios. Both companies have shown impressive growth potential, but they also face unique challenges in their respective markets. Understanding the differences between Jumia Technologies and Alibaba stocks is key to making informed investment decisions.

Jumia Technologies or Alibaba?

When comparing Jumia Technologies and Alibaba, 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 Jumia Technologies and Alibaba.

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. Jumia Technologies has a dividend yield of -%, while Alibaba has a dividend yield of 3.01%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Jumia Technologies reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Alibaba reports a 5-year dividend growth of 0.00% year and a payout ratio of 54.40%.

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 Jumia Technologies P/E ratio at -5.48 and Alibaba's P/E ratio at 18.25. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Jumia Technologies P/B ratio is 5.18 while Alibaba's P/B ratio is 1.65.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Jumia Technologies has seen a 5-year revenue growth of -0.21%, while Alibaba's is 2.38%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Jumia Technologies's ROE at -161.50% and Alibaba's ROE at 8.88%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $4.31 for Jumia Technologies and $87.24 for Alibaba. Over the past year, Jumia Technologies's prices ranged from $2.88 to $15.04, with a yearly change of 422.22%. Alibaba's prices fluctuated between $66.63 and $117.82, with a yearly change of 76.83%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.