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Reviewing Jumia Technologies (NYSE:JMIA) and Kidpik (NASDAQ:PIK)

Financial News Live ·  Jan 29, 2023 17:21

Jumia Technologies (NYSE:JMIA – Get Rating) and Kidpik (NASDAQ:PIK – Get Rating) are both small-cap retail/wholesale companies, but which is the superior business? We will compare the two companies based on the strength of their risk, analyst recommendations, valuation, profitability, earnings, institutional ownership and dividends.

Valuation and Earnings

This table compares Jumia Technologies and Kidpik's revenue, earnings per share (EPS) and valuation.

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Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Jumia Technologies $177.93 million 2.40 -$226.87 million N/A N/A
Kidpik $21.83 million 0.36 -$5.95 million ($1.05) -0.97

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

Risk & Volatility

Jumia Technologies has a beta of 2.45, suggesting that its stock price is 145% more volatile than the S&P 500. Comparatively, Kidpik has a beta of 3.67, suggesting that its stock price is 267% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Jumia Technologies and Kidpik, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Jumia Technologies 0 1 0 0 2.00
Kidpik 0 0 1 0 3.00

Jumia Technologies currently has a consensus price target of $6.00, suggesting a potential upside of 40.19%. Kidpik has a consensus price target of $7.00, suggesting a potential upside of 586.27%. Given Kidpik's stronger consensus rating and higher possible upside, analysts plainly believe Kidpik is more favorable than Jumia Technologies.

Institutional & Insider Ownership

22.2% of Jumia Technologies shares are owned by institutional investors. Comparatively, 9.8% of Kidpik shares are owned by institutional investors. 1.9% of Jumia Technologies shares are owned by company insiders. Comparatively, 67.5% of Kidpik shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Jumia Technologies and Kidpik's net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Jumia Technologies -123.25% -84.69% -56.38%
Kidpik -45.15% -60.30% -39.13%

Summary

Kidpik beats Jumia Technologies on 9 of the 12 factors compared between the two stocks.

About Jumia Technologies

(Get Rating)

Jumia Technologies AG is engaged in the provision of logistic services. It operates though the e-Commerce platform segment. The e-Commerce platform segment consists of marketplace, which connects sellers with consumers to its logistics service, enabling the shipment and delivery of packages from sellers to consumers, and payment service, which facilitates transactions among participants active on platform in selected markets. The company was founded by Jeremy Hodara, Sacha Poignonnec, Peter Allerstorfer, Manuel Koser, Tunde Kehinde and Raphael Afaedor in 2012 and is headquartered in Berlin, Germany.

About Kidpik

(Get Rating)

Kidpik Corp. operates as a subscription-based e-commerce company that sells kids apparel, footwear, and accessories. The company offers apparel, including tops, bottoms, cardigans, jackets, dresses, and swimwear in knit and woven fabrications; shoes, such as sneakers, boots, sandals, and dress shoes; and accessories comprising sunglasses, jewelry, bags, socks, hats, hair goods, and other items. It serves its customers through its retail website, shop.kidpik.com; amazon.com; and clothing subscription boxes, which provide mix-&-match coordinated outfits that are personalized based on each member's preferences. The company was incorporated in 2015 and is based in New York, New York.

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