Contrasting Jumia Technologies (NYSE:JMIA) & Carvana (NYSE:CVNA)

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

Analyst Ratings

This is a breakdown of recent recommendations for Carvana and Jumia Technologies, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Carvana	0	6	17	1	2.79
Jumia Technologies	1	0	4	0	2.60

Carvana currently has a consensus price target of $109.75, indicating a potential downside of 72.54%. Jumia Technologies has a consensus price target of $17.00, indicating a potential upside of 95.51%. Given Jumia Technologies’ higher possible upside, analysts clearly believe Jumia Technologies is more favorable than Carvana.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Carvana	$20.32 billion	4.30	$1.41 billion	$8.22	48.62
Jumia Technologies	$188.93 million	5.70	-$61.55 million	N/A	N/A

Carvana has higher revenue and earnings than Jumia Technologies.

Risk & Volatility

Carvana has a beta of 3.55, meaning that its share price is 255% more volatile than the S&P 500. Comparatively, Jumia Technologies has a beta of 2.45, meaning that its share price is 145% more volatile than the S&P 500.

Insider & Institutional Ownership

56.7% of Carvana shares are held by institutional investors. Comparatively, 16.5% of Jumia Technologies shares are held by institutional investors. 15.2% of Carvana shares are held by company insiders. Comparatively, 1.9% of Jumia Technologies shares are held by company 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 Carvana and Jumia Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Carvana	6.40%	41.46%	12.48%
Jumia Technologies	-32.58%	-135.28%	-40.15%

Summary

Carvana beats Jumia Technologies on 11 of the 13 factors compared between the two stocks.

About Carvana

Carvana Co., together with its subsidiaries, operates an e-commerce platform for buying and selling used cars in the United States. Its platform allows customers to research and identify a vehicle; inspect it using company's 360-degree vehicle imaging technology; obtain financing and warranty coverage; purchase the vehicle; and schedule delivery or pick-up from their desktop or mobile devices. The company also operates auction sites. The company was founded in 2012 and is based in Tempe, Arizona.

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.