Reviewing Jumia Technologies (NYSE:JMIA) and NextMart (OTCMKTS:NXMR)

Jumia Technologies (NYSE:JMIA) and NextMart (OTCMKTS:NXMR) are both retail/wholesale companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, analyst recommendations, earnings, institutional ownership, dividends, valuation and risk.

Institutional and Insider Ownership

16.5% of Jumia Technologies shares are owned by institutional investors. 1.9% of Jumia Technologies shares are owned by insiders. Comparatively, 56.4% of NextMart shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Volatility and Risk

Jumia Technologies has a beta of 2.45, suggesting that its share price is 145% more volatile than the S&P 500. Comparatively, NextMart has a beta of -0.82, suggesting that its share price is 182% less volatile than the S&P 500.

Profitability

This table compares Jumia Technologies and NextMart’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%
NextMart	N/A	N/A	N/A

Analyst Ratings

This is a summary of recent ratings and price targets for Jumia Technologies and NextMart, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Jumia Technologies	1	0	4	0	2.60
NextMart	0	0	0	0	0.00

Jumia Technologies presently has a consensus target price of $17.00, suggesting a potential upside of 142.34%. Given Jumia Technologies’ stronger consensus rating and higher possible upside, equities research analysts plainly believe Jumia Technologies is more favorable than NextMart.

Earnings and Valuation

This table compares Jumia Technologies and NextMart”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Jumia Technologies	$188.93 million	4.60	-$61.55 million	N/A	N/A
NextMart	N/A	N/A	N/A	N/A	N/A

NextMart has lower revenue, but higher earnings than Jumia Technologies.

Summary

Jumia Technologies beats NextMart on 6 of the 10 factors compared between the two stocks.

About Jumia Technologies

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 NextMart

NextMart, Inc. does not have significant operations. Previously, it was involved in the art event and art media direct marketing; art-themed products design and marketing; and art themed real estate development businesses. The company was incorporated in 1972 and is based in Scottsdale, Arizona.