Reviewing Token Cat (NASDAQ:TC) & Jumia Technologies (NYSE:JMIA)

Token Cat (NASDAQ:TC) and Jumia Technologies (NYSE:JMIA) are both small-cap retail/wholesale companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, earnings, profitability, institutional ownership, dividends and risk.

Institutional & Insider Ownership

8.9% of Token Cat shares are owned by institutional investors. Comparatively, 16.5% of Jumia Technologies shares are owned by institutional investors. 0.5% of Token Cat 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.

Volatility and Risk

Token Cat has a beta of 0.76, suggesting that its share price is 24% less volatile than the S&P 500. Comparatively, Jumia Technologies has a beta of 2.53, suggesting that its share price is 153% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Token Cat	N/A	N/A	N/A
Jumia Technologies	-32.58%	-135.27%	-40.14%

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Token Cat	$6.74 million	2.59	-$25.76 million	N/A	N/A
Jumia Technologies	$188.93 million	4.37	-$61.55 million	N/A	N/A

Token Cat has higher earnings, but lower revenue than Jumia Technologies.

Analyst Recommendations

This is a summary of current recommendations and price targets for Token Cat and Jumia Technologies, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Token Cat	1	0	0	0	1.00
Jumia Technologies	1	0	4	0	2.60

Jumia Technologies has a consensus price target of $17.00, indicating a potential upside of 155.06%. Given Jumia Technologies’ stronger consensus rating and higher probable upside, analysts clearly believe Jumia Technologies is more favorable than Token Cat.

Summary

Jumia Technologies beats Token Cat on 8 of the 12 factors compared between the two stocks.

About Token Cat

TuanChe Limited, through its subsidiaries, operates as an omni-channel automotive marketplace in China and internationally. It organizes auto shows and special promotion events; and provides integrated marketing solutions to industry customers, which include automakers, franchised dealerships, secondary dealers, and automotive service providers, as well as enable interactions between participants on both sides of a potential transaction. The company also offers business and technical support, and consulting services; online marketing services through various online platforms, including tuanche.com website, WeChat account, WeChat mini-program, mobile applications, and Cheshangtong, a SaaS product; and referral services for commercial bank to enhance its auto loan business. The company has a strategic partnership with Alibaba Group's Tmall; and Beijing Easyhome Furnishing Chain Group Co., Ltd. TuanChe Limited was founded in 2010 and is headquartered in Beijing, China.

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.