Jumia Technologies vs Microsoft Which Is a Smarter Choice?

Jumia Technologies and Microsoft are two prominent players in the tech industry, each with their own unique strengths and market positioning. Jumia, often referred to as the "Amazon of Africa," is a leading e-commerce platform in the continent, focusing on meeting the needs of consumers in emerging markets. On the other hand, Microsoft is a global powerhouse in software and technology, known for its diverse product offerings, including Windows, Azure, and Office 365. Both companies have seen significant growth in their stock values in recent years, making them attractive options for investors looking to capitalize on the booming tech sector.

Jumia Technologies or Microsoft?

When comparing Jumia Technologies and Microsoft, 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 Microsoft.

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 Microsoft has a dividend yield of 0.69%. 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, Microsoft reports a 5-year dividend growth of 10.16% year and a payout ratio of 24.63%.

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 -5.85 and Microsoft's P/E ratio at 36.92. 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 5.52 while Microsoft's P/B ratio is 11.61.

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 Microsoft's is 0.99%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Jumia Technologies's ROE at -161.50% and Microsoft's ROE at 34.56%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $4.58 for Jumia Technologies and $449.11 for Microsoft. Over the past year, Jumia Technologies's prices ranged from $2.88 to $15.04, with a yearly change of 422.22%. Microsoft's prices fluctuated between $364.13 and $468.35, with a yearly change of 28.62%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.