Financial Review: home24 (OTC:HMAGF) vs. Jumia Technologies (NYSE:JMIA)

Jumia Technologies (NYSE:JMIA) and home24 (OTC:HMAGF) are both consumer cyclical companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, analyst recommendations, valuation, earnings, institutional ownership, profitability and dividends.

Valuation and Earnings

This table compares Jumia Technologies and home24″s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Jumia Technologies	$186.49 million	2.64	-$104.15 million	N/A	N/A
home24	N/A	N/A	N/A	N/A	N/A

home24 has lower revenue, but higher earnings than Jumia Technologies.

Insider and Institutional Ownership

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

Profitability

This table compares Jumia Technologies and home24’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Jumia Technologies	-54.40%	-182.98%	-57.22%
home24	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of recent ratings and target prices for Jumia Technologies and home24, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Jumia Technologies	0	1	1	0	2.50
home24	0	0	0	0	N/A

Jumia Technologies currently has a consensus target price of $7.30, suggesting a potential upside of 49.90%. Given Jumia Technologies’ higher probable upside, research analysts clearly believe Jumia Technologies is more favorable than home24.

Summary

Jumia Technologies beats home24 on 5 of the 8 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 home24

home24 SE, together with its subsidiaries, engages in marketing, sale, and shipping of furniture and home furnishings. The company offers living, dining, bedroom, upholstered, and garden furniture; textiles; and lamps and accessories. It sells its products under the Studio Copenhagen, ARS NATURA, MORTEENS, ars MANUFACTI, fredriks, home24, Butlers, and Mobly brand names. The company operates showrooms, retail stores, outlets, and through ecommerce website. It has operations in Germany, Austria, Netherlands, Switzerland, Belgium, Brazil, and Italy. The company was incorporated in 2009 and is headquartered in Berlin, Germany.