Analyzing RDE (NASDAQ:GIFT) & Jumia Technologies (NYSE:JMIA)

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

Risk and Volatility

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

Institutional & Insider Ownership

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

Analyst Recommendations

This is a breakdown of recent ratings for RDE and Jumia Technologies, as provided by MarketBeat.

	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 target price of $4.00, indicating a potential upside of 210.08%. Jumia Technologies has a consensus target price of $8.00, indicating a potential upside of 99.50%. Given RDE’s stronger consensus rating and higher possible upside, equities analysts plainly believe RDE is more favorable than Jumia Technologies.

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%

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
RDE	$97.01 million	0.35	N/A	N/A	N/A
Jumia Technologies	$186.40 million	2.18	-$104.15 million	N/A	N/A

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

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.