Comparing Prosus (OTCMKTS:PROSY) & Jumia Technologies (NYSE:JMIA)

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

Risk & Volatility

Jumia Technologies has a beta of 2.44, meaning that its stock price is 144% more volatile than the S&P 500. Comparatively, Prosus has a beta of 0.73, meaning that its stock price is 27% less volatile than the S&P 500.

Insider and Institutional Ownership

16.5% of Jumia Technologies shares are owned by institutional investors. Comparatively, 0.0% of Prosus shares are owned by institutional investors. 1.9% of Jumia Technologies shares are owned by insiders. Comparatively, 0.5% of Prosus shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Jumia Technologies and Prosus”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	4.72	-$61.55 million	N/A	N/A
Prosus	$6.17 billion	4.38	$12.37 billion	N/A	N/A

Prosus has higher revenue and earnings than Jumia Technologies.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Jumia Technologies	-32.58%	-135.28%	-40.15%
Prosus	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Jumia Technologies and Prosus, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Jumia Technologies	1	0	4	0	2.60
Prosus	0	0	3	1	3.25

Jumia Technologies currently has a consensus price target of $17.00, suggesting a potential upside of 136.01%. Given Jumia Technologies’ higher possible upside, equities research analysts plainly believe Jumia Technologies is more favorable than Prosus.

Summary

Prosus beats Jumia Technologies on 7 of the 13 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 Prosus

Prosus N.V. engages in the e-commerce and internet businesses in Asia, Europe, Latin America, North America, and internationally. It operates internet platforms, such as classifieds, payments and fintech, food delivery, education technology, etail, ventures, social, and other internet platforms. The company was formerly known as Myriad International Holdings N.V. and changed its name to Prosus N.V. in August 2019. Prosus N.V. was incorporated in 1994 and is headquartered in Amsterdam, the Netherlands. Prosus N.V. operates as a subsidiary of Naspers Limited.