Lemonade (LMND) versus Its Rivals Financial Comparison

Lemonade (NYSE:LMND) is one of 311 public companies in the “Insurance” industry, but how does it weigh in compared to its competitors? We will compare Lemonade to similar companies based on the strength of its dividends, valuation, earnings, analyst recommendations, risk, profitability and institutional ownership.

Institutional & Insider Ownership

80.3% of Lemonade shares are held by institutional investors. Comparatively, 55.8% of shares of all “Insurance” companies are held by institutional investors. 12.2% of Lemonade shares are held by company insiders. Comparatively, 13.5% of shares of all “Insurance” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Risk and Volatility

Lemonade has a beta of 1.98, meaning that its stock price is 98% more volatile than the S&P 500. Comparatively, Lemonade’s competitors have a beta of -1.59, meaning that their average stock price is 259% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and target prices for Lemonade and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lemonade	1	4	4	0	2.33
Lemonade Competitors	3338	15694	16542	742	2.40

Lemonade presently has a consensus target price of $60.50, indicating a potential upside of 53.42%. As a group, “Insurance” companies have a potential upside of 4.63%. Given Lemonade’s higher probable upside, research analysts clearly believe Lemonade is more favorable than its competitors.

Profitability

This table compares Lemonade and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lemonade	-14.19%	-26.78%	-7.08%
Lemonade Competitors	9.08%	-9.84%	4.11%

Earnings & Valuation

This table compares Lemonade and its competitors revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Lemonade	$737.90 million	-$165.50 million	-20.98
Lemonade Competitors	$15.26 billion	$1.70 billion	34.34

Lemonade’s competitors have higher revenue and earnings than Lemonade. Lemonade is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Summary

Lemonade competitors beat Lemonade on 10 of the 13 factors compared.

About Lemonade

Lemonade, Inc. is a digital insurance company that uses technology and artificial intelligence to offer insurance products through its website and mobile app. Its offerings include renters, homeowners, car, pet and term life insurance, with product availability varying by location. Founded in 2015 by Daniel Schreiber and Shai Wininger, the company serves customers in the United States and several European markets. Lemonade is headquartered in New York City. Co-founder Daniel Schreiber leads the company as chief executive officer.