Head to Head Analysis: Ping An Insurance Co. of China (OTCMKTS:PNGAY) versus Lemonade (NYSE:LMND)

Ping An Insurance Co. of China (OTCMKTS:PNGAY) and Lemonade (NYSE:LMND) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, profitability, earnings, risk, valuation, dividends and analyst recommendations.

Valuation and Earnings

This table compares Ping An Insurance Co. of China and Lemonade”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ping An Insurance Co. of China	$158.77 billion	0.83	$17.61 billion	$1.83	7.92
Lemonade	$526.50 million	7.43	-$202.20 million	($2.83)	-18.70

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

Profitability

This table compares Ping An Insurance Co. of China and Lemonade’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ping An Insurance Co. of China	10.59%	9.18%	0.93%
Lemonade	-33.96%	-36.12%	-10.93%

Analyst Ratings

This is a breakdown of recent ratings and price targets for Ping An Insurance Co. of China and Lemonade, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ping An Insurance Co. of China	0	1	0	0	2.00
Lemonade	4	1	1	1	1.86

Lemonade has a consensus target price of $40.43, indicating a potential downside of 23.59%. Given Lemonade’s higher probable upside, analysts clearly believe Lemonade is more favorable than Ping An Insurance Co. of China.

Insider and Institutional Ownership

0.0% of Ping An Insurance Co. of China shares are held by institutional investors. Comparatively, 80.3% of Lemonade shares are held by institutional investors. 0.1% of Ping An Insurance Co. of China shares are held by insiders. Comparatively, 12.5% of Lemonade shares are held by 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.

Risk & Volatility

Ping An Insurance Co. of China has a beta of 0.36, indicating that its share price is 64% less volatile than the S&P 500. Comparatively, Lemonade has a beta of 2.27, indicating that its share price is 127% more volatile than the S&P 500.

Summary

Ping An Insurance Co. of China beats Lemonade on 8 of the 15 factors compared between the two stocks.

About Ping An Insurance Co. of China

Ping An Insurance (Group) Company of China, Ltd. provides financial products and services for insurance, banking, asset management, and technology businesses in the People's Republic of China. The company operates through Life and Health Insurance; Property and Casualty Insurance; Banking; Asset Management; and Technology segments. Its Life and Health Insurance segment offers term, whole-life, endowment, annuity, investment-linked, universal life, and health care and medical insurance to individual and corporate customers. The company's Property and Casualty Insurance segment provides auto, non-auto, and accident and health insurance to individual and corporate customers. Its Banking segment undertakes loan and intermediary businesses with corporate and retail customers; and offers wealth management and credit card services to individual customers. The company's Asset Management segment provides trust products services, brokerage services, trading services, investment banking services, investment management, finance lease, and other asset management services. Its Technology segment offers financial and daily-life services through internet platforms, such as financial transaction information service, and health care service platforms. The company also provides annuity insurance, IT and business process outsourcing, real estate investment and management, futures brokerage, project investment, currency brokerage, property agency, fund raising and distribution, real estate development and leasing, and insurance agency services. In addition, it provides factoring, equity investment, logistics and warehousing, management consulting, e-commerce, and credit information services; and operates an expressway, as well as produces and sells consumer chemicals. The company was incorporated in 1988 and is based in Shenzhen, China.

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.