Jumia Technologies vs PDD Which Is Superior?

Jumia Technologies and Pinduoduo (PDD) are two prominent e-commerce companies that have gained significant attention in the stock market. Jumia, often referred to as the "Amazon of Africa," operates in multiple African countries and has shown promising growth potential. On the other hand, Pinduoduo is a Chinese e-commerce platform known for its innovative social commerce model. Both companies have experienced fluctuations in their stock prices, making them interesting options for investors looking to capitalize on the expanding e-commerce market.

Jumia Technologies or PDD?

When comparing Jumia Technologies and PDD, 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 PDD.

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 PDD 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, PDD 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 -5.48 and PDD's P/E ratio at 9.52. 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 PDD's P/B ratio is 3.70.

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 PDD's is 8.60%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Jumia Technologies's ROE at -161.50% and PDD's ROE at 46.15%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $4.31 for Jumia Technologies and $100.23 for PDD. Over the past year, Jumia Technologies's prices ranged from $2.88 to $15.04, with a yearly change of 422.22%. PDD's prices fluctuated between $88.01 and $164.69, with a yearly change of 87.13%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.