Head-To-Head Review: eBay (NASDAQ:EBAY) & Jumia Technologies (NYSE:JMIA)

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

Insider & Institutional Ownership

87.5% of eBay shares are owned by institutional investors. Comparatively, 16.5% of Jumia Technologies shares are owned by institutional investors. 0.6% of eBay shares are owned by insiders. Comparatively, 1.9% of Jumia Technologies shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares eBay and Jumia Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
eBay	17.58%	46.11%	11.97%
Jumia Technologies	-32.58%	-135.28%	-40.15%

Analyst Ratings

This is a breakdown of recent recommendations for eBay and Jumia Technologies, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
eBay	1	18	14	0	2.39
Jumia Technologies	1	0	4	0	2.60

eBay currently has a consensus target price of $105.32, indicating a potential upside of 1.20%. Jumia Technologies has a consensus target price of $17.00, indicating a potential upside of 141.75%. Given Jumia Technologies’ stronger consensus rating and higher probable upside, analysts plainly believe Jumia Technologies is more favorable than eBay.

Risk and Volatility

eBay has a beta of 1.39, indicating that its stock price is 39% more volatile than the S&P 500. Comparatively, Jumia Technologies has a beta of 2.46, indicating that its stock price is 146% more volatile than the S&P 500.

Earnings and Valuation

This table compares eBay and Jumia Technologies”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
eBay	$11.10 billion	4.20	$2.03 billion	$4.41	23.60
Jumia Technologies	$188.93 million	4.61	-$61.55 million	N/A	N/A

eBay has higher revenue and earnings than Jumia Technologies.

Summary

eBay beats Jumia Technologies on 7 of the 12 factors compared between the two stocks.

About eBay

eBay Inc., together with its subsidiaries, operates marketplace platforms that connect buyers and sellers in the United States, the United Kingdom, China, Germany, and internationally. The company’s marketplace platform includes its online marketplace at ebay.com, off-platform businesses, and the eBay suite of mobile apps. Its platforms enable users to list, sell, and buy various products. The company was founded in 1995 and is headquartered in San Jose, California.

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.