Contrasting Jumbo (OTCMKTS:JUMSY) and Afya (NASDAQ:AFYA)

Afya (NASDAQ:AFYA) and Jumbo (OTCMKTS:JUMSY) are both consumer discretionary companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, institutional ownership, risk, valuation, analyst recommendations, dividends and earnings.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Afya and Jumbo, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Afya	0	6	0	0	2.00
Jumbo	0	0	0	0	0.00

Afya currently has a consensus price target of $18.00, suggesting a potential upside of 33.93%. Given Afya’s stronger consensus rating and higher probable upside, analysts clearly believe Afya is more favorable than Jumbo.

Profitability

This table compares Afya and Jumbo’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Afya	20.20%	17.94%	9.16%
Jumbo	N/A	N/A	N/A

Insider and Institutional Ownership

88.0% of Afya shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Afya and Jumbo”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Afya	$662.01 million	1.90	$134.77 million	$1.53	8.78
Jumbo	N/A	N/A	N/A	$0.76	36.63

Afya has higher revenue and earnings than Jumbo. Afya is trading at a lower price-to-earnings ratio than Jumbo, indicating that it is currently the more affordable of the two stocks.

Summary

Afya beats Jumbo on 8 of the 9 factors compared between the two stocks.

About Afya

Afya Limited, through its subsidiaries, operates as a medical education group in Brazil. The company operates through three segments: Undergrad, Continuing Education, and Digital Services. It offers educational products and services, including medical schools, medical residency preparatory courses, graduate courses, and other programs to lifelong medical learners enrolled across its distribution network, as well as to third-party medical schools. The company also provides digital health services, such as subscription-based mobile app and website portal that focuses on assisting health professionals and students with clinical decision-making through tools, such as medical calculators, charts, and updated content, as well as prescriptions, clinical scores, medical procedures and laboratory exams, and others. It offers health sciences courses, which comprise medicine, dentistry, nursing, radiology, psychology, pharmacy, physical education, physiotherapy, nutrition, and biomedicine; and degree programs and courses in other subjects and disciplines, including undergraduate and post graduate courses in business administration, accounting, law, civil engineering, industrial engineering, and pedagogy. In addition, the company provides medical postgraduate specialization programs; printed and digital content; and an online medical education platform and practical medical training services. The company was founded in 1999 and is headquartered in Nova Lima, Brazil.

About Jumbo

Jumbo S.A. engages in the retail sale of toys, baby products, gift articles, household products, stationery, seasonal and decoration items, books, and related products in Greece, Cyprus, Bulgaria, and Romania. The company operates e-jumbo, an online store. It is involved in the wholesale of toys and related products to third parties. Jumbo S.A. was incorporated in 1986 and is headquartered in Athens, Greece.