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Better Buy: Costco vs. Jumia

TheMotleyFool

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Some people like the thrill of the gamble. Others would prefer to bet on the house. Jumia (NYSE: JMIA) and Costco (NASDAQ: COST) are like two sides of a casino coin. Jumia is the risky wager; it's short on profitability but long on potential. It's an early leader in Africa's still nascent e-commerce market. It may take years before achieving viability, but with a modest $3.5 billion market cap, the ceiling is high.

Costco is the safe bet; it's the proven all-weather winner. The ceiling isn't as high as what you will find in the exposed beams of its warehouses -- or in Jumia -- but the floor is solid. Is Costco or Jumia the better buy? Place your bets.

Image source: Getty Images.

Source Fool.com

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