Auto Trader Group (OTCMKTS:ATDRY) versus Jumia Technologies (NYSE:JMIA) Critical Analysis

Jumia Technologies (NYSE:JMIA) and Auto Trader Group (OTCMKTS:ATDRY) are both retail/wholesale companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, earnings, dividends, institutional ownership, valuation, risk and profitability.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Jumia Technologies and Auto Trader Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Jumia Technologies	1	0	4	0	2.60
Auto Trader Group	1	3	1	0	2.00

Jumia Technologies currently has a consensus target price of $17.00, indicating a potential upside of 150.11%. Given Jumia Technologies’ stronger consensus rating and higher probable upside, equities analysts clearly believe Jumia Technologies is more favorable than Auto Trader Group.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Jumia Technologies	-30.79%	-198.26%	-45.46%
Auto Trader Group	N/A	N/A	N/A

Insider and Institutional Ownership

16.5% of Jumia Technologies shares are owned by institutional investors. Comparatively, 0.0% of Auto Trader Group shares are owned by institutional investors. 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.

Risk and Volatility

Jumia Technologies has a beta of 2.42, meaning that its stock price is 142% more volatile than the S&P 500. Comparatively, Auto Trader Group has a beta of 1.15, meaning that its stock price is 15% more volatile than the S&P 500.

Earnings and Valuation

This table compares Jumia Technologies and Auto Trader Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Jumia Technologies	$203.23 million	4.14	-$61.55 million	N/A	N/A
Auto Trader Group	$836.74 million	5.92	$393.91 million	N/A	N/A

Auto Trader Group has higher revenue and earnings than Jumia Technologies.

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 Auto Trader Group

Auto Trader Group plc operates in the digital automotive marketplace in the United Kingdom and Ireland. The company provides vehicle advertisement on its websites for private sellers, as well as insurance and loan financing products to consumers; and display advertising on its websites for manufacturers and their advertising agencies. The company offers its products to retailers, home traders, and logistics firms. Auto Trader Group plc was founded in 1977 and is headquartered in Manchester, the United Kingdom.