Head-To-Head Survey: RDE (NASDAQ:GIFT) vs. Jumia Technologies (NYSE:JMIA)

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

Institutional and Insider Ownership

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

Profitability

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

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

Analyst Recommendations

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

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

RDE currently has a consensus price target of $4.00, suggesting a potential upside of 179.72%. Jumia Technologies has a consensus price target of $8.00, suggesting a potential upside of 98.27%. Given RDE’s stronger consensus rating and higher possible upside, equities analysts clearly believe RDE is more favorable than Jumia Technologies.

Valuation and Earnings

This table compares RDE and Jumia Technologies”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
RDE	$85.95 million	0.44	N/A	N/A	N/A
Jumia Technologies	$186.40 million	2.19	-$104.15 million	N/A	N/A

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

Volatility and Risk

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

Summary

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

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.

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.