Financial Comparison: Aegon (NYSE:AEG) vs. Lemonade (NYSE:LMND)

Lemonade (NYSE:LMND) and Aegon (NYSE:AEG) are both finance companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, profitability, valuation, analyst recommendations, institutional ownership, earnings and risk.

Analyst Recommendations

This is a breakdown of current recommendations for Lemonade and Aegon, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lemonade	3	1	5	0	2.22
Aegon	0	3	3	1	2.71

Lemonade currently has a consensus price target of $68.75, suggesting a potential upside of 3.85%. Given Lemonade’s higher probable upside, research analysts plainly believe Lemonade is more favorable than Aegon.

Risk and Volatility

Lemonade has a beta of 2.12, indicating that its share price is 112% more volatile than the S&P 500. Comparatively, Aegon has a beta of 0.78, indicating that its share price is 22% less volatile than the S&P 500.

Valuation & Earnings

This table compares Lemonade and Aegon”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lemonade	$737.90 million	6.85	-$165.50 million	($2.26)	-29.29
Aegon	$10.65 billion	1.32	$744.48 million	($0.16)	-43.72

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

Institutional & Insider Ownership

80.3% of Lemonade shares are owned by institutional investors. Comparatively, 4.3% of Aegon shares are owned by institutional investors. 14.7% of Lemonade shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Lemonade and Aegon’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lemonade	-22.43%	-31.19%	-8.67%
Aegon	N/A	N/A	N/A

Summary

Aegon beats Lemonade on 8 of the 15 factors compared between the two stocks.

About Lemonade

Lemonade, Inc. provides various insurance products through various channels in the United States, Europe, and the United Kingdom. Its insurance products include stolen or damaged property, and personal liability that protects its customers if they are responsible for an accident or damage to another person or their property. The company also offers renters, homeowners, car, pet, and life insurance products, as well as landlord insurance policies. In addition, it operates as an agent for other insurance companies. The company was formerly known as Lemonade Group, Inc. and changed its name to Lemonade, Inc. Lemonade, Inc. was incorporated in 2015 and is headquartered in New York, New York.

About Aegon

Aegon Ltd. provides insurance, pensions, retirement, and asset management services in the United States, the Netherlands, the United Kingdom, and internationally. The company offers life, accident, property and casualty, and health insurance; annuities, retirement plans, mutual funds, and stable value solutions; residential mortgage and digital baking services; and retail and institutional investment management solutions and retirement savings vehicles and strategies. It offers its products under the Aegon and Transamerica brands. Aegon Ltd. was founded in 1844 and is headquartered in The Hague, the Netherlands.