Heritage Insurance (NYSE:HRTG) vs. Lemonade (NYSE:LMND) Head to Head Survey

Heritage Insurance (NYSE:HRTGGet Rating) and Lemonade (NYSE:LMNDGet Rating) are both small-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, valuation, risk, institutional ownership, earnings, analyst recommendations and dividends.

Profitability

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

Net Margins Return on Equity Return on Assets
Heritage Insurance -11.83% -3.56% -0.66%
Lemonade -187.93% -22.54% -16.09%

Volatility & Risk

Heritage Insurance has a beta of 0.54, meaning that its share price is 46% less volatile than the S&P 500. Comparatively, Lemonade has a beta of 2.1, meaning that its share price is 110% more volatile than the S&P 500.

Institutional & Insider Ownership

60.9% of Heritage Insurance shares are owned by institutional investors. Comparatively, 58.5% of Lemonade shares are owned by institutional investors. 8.5% of Heritage Insurance shares are owned by insiders. Comparatively, 38.8% of Lemonade shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Heritage Insurance and Lemonade’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Heritage Insurance $631.56 million 0.18 -$74.73 million ($2.71) -1.57
Lemonade $128.40 million 10.02 -$241.30 million ($3.93) -5.31

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

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Heritage Insurance and Lemonade, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Heritage Insurance 0 0 2 0 3.00
Lemonade 2 2 3 0 2.14

Heritage Insurance presently has a consensus target price of $12.00, suggesting a potential upside of 181.69%. Lemonade has a consensus target price of $46.29, suggesting a potential upside of 121.89%. Given Heritage Insurance’s stronger consensus rating and higher probable upside, research analysts clearly believe Heritage Insurance is more favorable than Lemonade.

Summary

Heritage Insurance beats Lemonade on 10 of the 14 factors compared between the two stocks.

About Heritage Insurance (Get Rating)

Heritage Insurance Holdings, Inc., through its subsidiaries, provides personal and commercial residential insurance products. The company offers personal residential property insurance for single-family homeowners and condominium owners, and rental property insurance in the states of Alabama, California, Connecticut, Delaware, Florida, Georgia, Hawaii, Maryland, Massachusetts, Mississippi, New Jersey, New York, North Carolina, Rhode Island, South Carolina, and Virginia; commercial residential insurance for properties in Florida, New Jersey, and New York; and licensed in the state of Pennsylvania, as well as personal residential and wind-only property insurance. It also provides restoration, and emergency and recovery services; and property management, and reinsurance services. The company writes personal line policies through a network of retail independent agents, wholesale agents, and a partnership with a direct agency, as well as indirectly to approximately 1,500 retail locations through eight wholesale agency relationships; and personal and commercial insurance policies through a network of approximately 70 independent agencies. Heritage Insurance Holdings, Inc. was founded in 2012 and is headquartered in Tampa, Florida.

About Lemonade (Get Rating)

Lemonade, Inc. provides various insurance products in the United States and Europe. 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, pet, car, 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.

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