Analyzing Lemonade (LMND) and Its Competitors

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Lemonade	-12.95%	-28.59%	-7.24%
Lemonade Competitors	9.45%	-10.05%	4.09%

Institutional & Insider Ownership

80.3% of Lemonade shares are held by institutional investors. Comparatively, 55.9% of shares of all “Insurance” companies are held by institutional investors. 12.2% of Lemonade shares are held by insiders. Comparatively, 13.4% of shares of all “Insurance” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Volatility and Risk

Lemonade has a beta of 1.98, suggesting that its stock price is 98% more volatile than the S&P 500. Comparatively, Lemonade’s rivals have a beta of -1.55, suggesting that their average stock price is 255% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Lemonade and its rivals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lemonade	1	4	4	0	2.33
Lemonade Competitors	3349	15720	16568	747	2.40

Lemonade presently has a consensus target price of $60.50, suggesting a potential upside of 36.68%. As a group, “Insurance” companies have a potential upside of 4.23%. Given Lemonade’s higher possible upside, research analysts plainly believe Lemonade is more favorable than its rivals.

Earnings & Valuation

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Lemonade	$737.90 million	-$165.50 million	-23.54
Lemonade Competitors	$15.32 billion	$1.70 billion	33.70

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

Summary

Lemonade rivals 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.