Financial Analysis: Jumia Technologies (NYSE:JMIA) versus Alibaba Group (NYSE:BABA)

Jumia Technologies (NYSE:JMIAGet Free Report) and Alibaba Group (NYSE:BABAGet Free Report) are both retail/wholesale companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, dividends, profitability, valuation, analyst recommendations, institutional ownership and earnings.

Institutional and Insider Ownership

16.5% of Jumia Technologies shares are held by institutional investors. Comparatively, 13.5% of Alibaba Group shares are held by institutional investors. 1.9% of Jumia Technologies shares are held by insiders. Comparatively, 12.5% of Alibaba Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations and price targets for Jumia Technologies and Alibaba Group, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Jumia Technologies 1 0 4 0 2.60
Alibaba Group 1 4 16 2 2.83

Jumia Technologies presently has a consensus target price of $17.00, suggesting a potential upside of 147.99%. Alibaba Group has a consensus target price of $188.76, suggesting a potential upside of 48.06%. Given Jumia Technologies’ higher probable upside, equities research analysts plainly believe Jumia Technologies is more favorable than Alibaba Group.

Profitability

This table compares Jumia Technologies and Alibaba Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Jumia Technologies -30.79% -198.26% -45.46%
Alibaba Group 10.31% 4.76% 2.79%

Earnings and Valuation

This table compares Jumia Technologies and Alibaba Group”s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Jumia Technologies $188.93 million 4.49 -$61.55 million N/A N/A
Alibaba Group $148.40 billion 2.06 $15.02 billion $6.09 20.93

Alibaba Group has higher revenue and earnings than Jumia Technologies.

Risk & Volatility

Jumia Technologies has a beta of 2.42, suggesting that its share price is 142% more volatile than the S&P 500. Comparatively, Alibaba Group has a beta of 0.47, suggesting that its share price is 53% less volatile than the S&P 500.

Summary

Alibaba Group beats Jumia Technologies on 9 of the 13 factors compared between the two stocks.

About Jumia Technologies

(Get Free Report)

Jumia Technologies AG operates an e-commerce platform in West Africa, North Africa, East and South Africa, Europe, the United Arab Emirates, and internationally. The company’s platform consists of marketplace that connects sellers with customers; logistics service, which enables the shipment and delivery of packages from sellers to consumers; and payment service, which facilitates transactions to participants active on the company’s platform in selected markets under the JumiaPay name. Its marketplace offers various products in a range of categories, including phones, electronics, home and living, fashion, beauty, and fast-moving consumer goods; and various digital lifestyle services, such as utility bills payment, airtime recharge, gaming and entertainment, and transport ticketing, as well as financial services comprising micro-loans, insurance, and savings products. The company was formerly known as Africa Internet Holding GmbH and changed its name to Jumia Technologies AG in January 2019. Jumia Technologies AG was incorporated in 2012 and is headquartered in Berlin, Germany.

About Alibaba Group

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Alibaba Group Holding Limited, through its subsidiaries, provides technology infrastructure and marketing reach to help merchants, brands, retailers, and other businesses to engage with their users and customers in the People's Republic of China and internationally. The company operates through seven segments: China Commerce, International Commerce, Local Consumer Services, Cainiao, Cloud, Digital Media and Entertainment, and Innovation Initiatives and Others. It operates Taobao, a digital retail platform; Tmall, a third-party online and mobile commerce platform; Alimama, a monetization platform; 1688.com and Alibaba.com, which are online wholesale marketplaces; AliExpress, a retail marketplace; Lazada, Trendyol, and Daraz that are e-commerce platforms; Freshippo, a retail platform for groceries and fresh goods; and Tmall Global, an import e-commerce platform. The company also operates Cainiao Network logistic services platform; Ele.me, an on-demand delivery and local services platform; Koubei, a restaurant and local services guide platform; and Fliggy, an online travel platform. In addition, it offers pay-for-performance, in-feed, and display marketing services; and Taobao Ad Network and Exchange, a real-time online bidding marketing exchange. Further, the company provides elastic computing, storage, network, security, database, big data, and IoT services; and hardware, software license, software installation, and application development and maintenance services. Additionally, it operates Youku, an online video platform; Quark, a platform for information search, storage, and consumption; Alibaba Pictures and other content platforms that provide online videos, films, live events, news feeds, literature, music, and others; Amap, a mobile digital map, navigation, and real-time traffic information app; DingTalk, a business efficiency mobile app; and Tmall Genie smart speaker. The company was incorporated in 1999 and is based in Hangzhou, the People's Republic of China.

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