Financial Survey: RDE (NASDAQ:GIFT) versus Jumia Technologies (NYSE:JMIA)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Jumia Technologies	-53.64%	-161.08%	-53.38%
RDE	N/A	-62.87%	-38.24%

Institutional & Insider Ownership

16.5% of Jumia Technologies shares are held by institutional investors. 1.9% of Jumia Technologies shares are held by company insiders. Comparatively, 20.5% of RDE shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Jumia Technologies	0	1	1	0	2.50
RDE	0	0	1	0	3.00

Jumia Technologies currently has a consensus target price of $8.00, suggesting a potential upside of 93.47%. RDE has a consensus target price of $4.00, suggesting a potential upside of 175.86%. Given RDE’s stronger consensus rating and higher possible upside, analysts plainly believe RDE is more favorable than Jumia Technologies.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Jumia Technologies	$186.40 million	2.24	-$104.15 million	N/A	N/A
RDE	$97.01 million	0.39	N/A	N/A	N/A

RDE has lower revenue, but higher earnings than Jumia Technologies.

Volatility & Risk

Jumia Technologies has a beta of 2.86, indicating that its stock price is 186% more volatile than the S&P 500. Comparatively, RDE has a beta of -0.72, indicating that its stock price is 172% less volatile than the S&P 500.

Summary

RDE beats Jumia Technologies on 6 of the 10 factors compared between the two stocks.

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 RDE

RDE, Inc. owns and operates a restaurant deal space in the United States. The company operates Restaurant.com that connects digital consumers, businesses, and communities with dining and merchant deal options at approximately 182,500 restaurants and retailers to approximately 7.8 million customers. It sells discount certificates for restaurants, as well as complementary entertainment and travel offerings, and consumer products on behalf of third-party merchants. The company is based in Schaumburg, Illinois.