Jumia Technologies vs Shopify

Jumia Technologies and Shopify are two prominent e-commerce companies that have seen significant growth in recent years. Jumia, often referred to as the "Amazon of Africa," operates in multiple African countries and has shown strong potential for expansion. On the other hand, Shopify is a Canadian e-commerce platform that has become a go-to solution for online businesses worldwide. Both companies have attracted investor interest, but each has its own strengths and weaknesses that can impact their stock performance.

Jumia Technologies or Shopify?

When comparing Jumia Technologies and Shopify, 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 Shopify.

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 Shopify 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, Shopify 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 -5.00 and Shopify's P/E ratio at 82.95. 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 20.17 while Shopify's P/B ratio is 11.51.

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 Shopify's is 4.42%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Jumia Technologies's ROE at -183.25% and Shopify's ROE at 14.38%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $4.94 for Jumia Technologies and $80.46 for Shopify. Over the past year, Jumia Technologies's prices ranged from $2.23 to $15.04, with a yearly change of 572.93%. Shopify's prices fluctuated between $45.50 and $91.57, with a yearly change of 101.25%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.