Prosus (OTCMKTS:PROSY) versus Jumia Technologies (NYSE:JMIA) Critical Comparison

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

Profitability

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

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

Earnings and Valuation

This table compares Prosus and Jumia Technologies”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Prosus	$6.17 billion	4.00	$12.37 billion	N/A	N/A
Jumia Technologies	$188.93 million	4.58	-$61.55 million	N/A	N/A

Prosus has higher revenue and earnings than Jumia Technologies.

Risk and Volatility

Prosus has a beta of 0.78, indicating that its stock price is 22% less volatile than the S&P 500. Comparatively, Jumia Technologies has a beta of 2.53, indicating that its stock price is 153% more volatile than the S&P 500.

Insider and Institutional Ownership

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

Analyst Recommendations

This is a summary of current ratings and recommmendations for Prosus and Jumia Technologies, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Prosus	1	0	3	0	2.50
Jumia Technologies	1	0	4	0	2.60

Jumia Technologies has a consensus target price of $17.00, suggesting a potential upside of 143.20%. Given Jumia Technologies’ stronger consensus rating and higher possible upside, analysts plainly believe Jumia Technologies is more favorable than Prosus.

Summary

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

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.

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.