Critical Analysis: Afya (NASDAQ:AFYA) and Jumbo (OTCMKTS:JUMSY)

Afya (NASDAQ:AFYA) and Jumbo (OTCMKTS:JUMSY) are both consumer discretionary companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, earnings, risk, analyst recommendations, valuation, institutional ownership and profitability.

Profitability

This table compares Afya and Jumbo’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Afya	20.20%	17.94%	9.16%
Jumbo	N/A	N/A	N/A

Analyst Recommendations

This is a summary of recent ratings and target prices for Afya and Jumbo, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Afya	0	6	0	0	2.00
Jumbo	0	0	0	0	0.00

Afya currently has a consensus target price of $18.00, indicating a potential upside of 29.39%. Given Afya’s stronger consensus rating and higher probable upside, equities analysts clearly believe Afya is more favorable than Jumbo.

Earnings and Valuation

This table compares Afya and Jumbo”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Afya	$3.77 billion	0.35	$134.77 million	$1.53	9.09
Jumbo	N/A	N/A	N/A	$0.76	35.55

Afya has higher revenue and earnings than Jumbo. Afya is trading at a lower price-to-earnings ratio than Jumbo, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

88.0% of Afya shares are owned by institutional investors. 0.8% of Afya shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Afya beats Jumbo on 9 of the 10 factors compared between the two stocks.

About Afya

Afya Limited, through its subsidiaries, operates as a medical education group in Brazil. The company operates through three segments: Undergrad, Continuing Education, and Digital Services. It offers educational products and services, including medical schools, medical residency preparatory courses, graduate courses, and other programs to lifelong medical learners enrolled across its distribution network, as well as to third-party medical schools. The company also provides digital health services, such as subscription-based mobile app and website portal that focuses on assisting health professionals and students with clinical decision-making through tools, such as medical calculators, charts, and updated content, as well as prescriptions, clinical scores, medical procedures and laboratory exams, and others. It offers health sciences courses, which comprise medicine, dentistry, nursing, radiology, psychology, pharmacy, physical education, physiotherapy, nutrition, and biomedicine; and degree programs and courses in other subjects and disciplines, including undergraduate and post graduate courses in business administration, accounting, law, civil engineering, industrial engineering, and pedagogy. In addition, the company provides medical postgraduate specialization programs; printed and digital content; and an online medical education platform and practical medical training services. The company was founded in 1999 and is headquartered in Nova Lima, Brazil.

About Jumbo

Jumbo S.A. engages in the retail sale of toys, baby products, gift articles, household products, stationery, seasonal and decoration items, books, and related products in Greece, Cyprus, Bulgaria, and Romania. The company operates e-jumbo, an online store. It is involved in the wholesale of toys and related products to third parties. Jumbo S.A. was incorporated in 1986 and is headquartered in Athens, Greece.