Jumia Technologies vs PayPal Which Is More Promising?

Jumia Technologies and PayPal are two prominent players in the e-commerce and online payment industries, each boasting a significant presence in the global market. Jumia Technologies, often referred to as the "Amazon of Africa," operates primarily in emerging markets, while PayPal is a well-established leader in the online payment sector. Both companies have experienced significant growth and success in recent years, but each faces unique challenges and opportunities as they continue to expand their reach and offerings in the digital marketplace. This comparison will explore the performance and potential of Jumia Technologies and PayPal stocks.

Jumia Technologies or PayPal?

When comparing Jumia Technologies and PayPal, 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 PayPal.

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 PayPal has a dividend yield of -%. 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, PayPal 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 Jumia Technologies P/E ratio at -3.97 and PayPal's P/E ratio at 19.93. 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 16.02 while PayPal's P/B ratio is 4.37.

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 PayPal's is 1.07%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Jumia Technologies's ROE at -183.25% and PayPal's ROE at 21.46%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $3.69 for Jumia Technologies and $83.38 for PayPal. Over the past year, Jumia Technologies's prices ranged from $2.46 to $15.04, with a yearly change of 511.38%. PayPal's prices fluctuated between $53.98 and $87.47, with a yearly change of 62.04%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.