Contrasting PhoneX (OTCMKTS:PXHI) and Jumia Technologies (NYSE:JMIA)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Jumia Technologies	-54.40%	-182.98%	-57.22%
PhoneX	3.46%	N/A	N/A

Analyst Ratings

This is a summary of current ratings for Jumia Technologies and PhoneX, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Jumia Technologies	0	1	1	0	2.50
PhoneX	0	0	0	0	N/A

Jumia Technologies currently has a consensus price target of $7.30, indicating a potential upside of 52.24%. Given Jumia Technologies’ higher probable upside, equities research analysts plainly believe Jumia Technologies is more favorable than PhoneX.

Institutional and Insider Ownership

16.5% of Jumia Technologies shares are owned by institutional investors. 1.9% of Jumia Technologies shares are owned by company insiders. Comparatively, 21.5% of PhoneX 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.

Risk & Volatility

Jumia Technologies has a beta of 2.92, suggesting that its stock price is 192% more volatile than the S&P 500. Comparatively, PhoneX has a beta of 2.25, suggesting that its stock price is 125% more volatile than the S&P 500.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Jumia Technologies	$186.49 million	2.60	-$104.15 million	N/A	N/A
PhoneX	$179.41 million	0.20	$6.41 million	$0.16	6.31

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

Summary

Jumia Technologies beats PhoneX on 6 of the 11 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 PhoneX

PhoneX Holdings, Inc. operates as a market maker of used smartphones. The company acquires products from individual consumers through its uSell.com Website, as well as from various carriers, big box retailers, and manufacturers through its subsidiary, We Sell Cellular. It sells its devices to professional buyers, such as brick and mortar retailers, online retailers, large and small wholesalers, small repair shops, large refurbishing providers, and insurance companies, as well as directly to consumers through third party e-commerce platforms. The company was formerly known as usell.com, Inc. and changed its name to PhoneX Holdings, Inc. in May 2019. PhoneX Holdings, Inc. was incorporated in 2003 and is headquartered in New York, New York.