Jumia Technologies (JMIA) & Stitch Fix (SFIX) Critical Review

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

Valuation and Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Jumia Technologies N/A N/A N/A N/A N/A
Stitch Fix $1.23 billion 1.99 $44.90 million $0.39 62.74



Stitch Fix has higher revenue and earnings than Jumia Technologies.

Profitability

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

Net Margins Return on Equity Return on Assets
Jumia Technologies N/A N/A N/A
Stitch Fix 3.67% 15.47% 9.78%

Institutional and Insider Ownership

27.9% of Stitch Fix shares are held by institutional investors. 57.0% of Stitch Fix shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and recommmendations for Jumia Technologies and Stitch Fix, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Jumia Technologies 1 3 3 0 2.29
Stitch Fix 0 6 3 0 2.33

Jumia Technologies currently has a consensus price target of $37.33, indicating a potential upside of 59.27%. Stitch Fix has a consensus price target of $36.88, indicating a potential upside of 50.69%. Given Jumia Technologies’ higher possible upside, research analysts plainly believe Jumia Technologies is more favorable than Stitch Fix.

Summary

Stitch Fix beats Jumia Technologies on 7 of the 8 factors compared between the two stocks.

Jumia Technologies Company Profile

Jumia Technologies AG operates an e-commerce platform in Africa. The company's platform consists of marketplace, which connects sellers with consumers; logistics service that 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. Its marketplace offers various products in a range of categories, including fashion and apparel, smartphones, home and living, consumer packaged goods, beauty and perfumes, and other electronics, as well as access to various services, such as restaurant food delivery, hotel and flight booking, classified advertising, airtime recharge, and instant delivery. 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 founded in 2012 and is headquartered in Berlin, Germany.

Stitch Fix Company Profile

Stitch Fix, Inc. sells a range of apparel, shoes, and accessories through its Website and mobile app in the United States. It offers denim, dresses, blouses, skirts, shoes, jewelry, and handbags for men, women, and kids under the Stitch Fix brand. The company was formerly known as rack habit inc. and changed its name to Stitch Fix, Inc. in October 2011. Stitch Fix, Inc. was founded in 2011 and is headquartered in San Francisco, California.

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