Lemonade (NYSE:LMND) and AIFU (NASDAQ:AIFU) Head-To-Head Comparison

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

Analyst Ratings

This is a breakdown of recent ratings and target prices for Lemonade and AIFU, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lemonade	4	1	1	1	1.86
AIFU	0	0	0	0	0.00

Lemonade currently has a consensus target price of $40.43, indicating a potential downside of 17.78%. Given Lemonade’s stronger consensus rating and higher possible upside, analysts plainly believe Lemonade is more favorable than AIFU.

Institutional & Insider Ownership

80.3% of Lemonade shares are held by institutional investors. Comparatively, 26.7% of AIFU shares are held by institutional investors. 14.7% of Lemonade shares are held by company insiders. Comparatively, 25.6% of AIFU shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Lemonade	-33.96%	-36.12%	-10.93%
AIFU	N/A	N/A	N/A

Risk & Volatility

Lemonade has a beta of 2.28, indicating that its share price is 128% more volatile than the S&P 500. Comparatively, AIFU has a beta of 0.53, indicating that its share price is 47% less volatile than the S&P 500.

Valuation & Earnings

This table compares Lemonade and AIFU”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lemonade	$526.50 million	6.90	-$202.20 million	($2.83)	-17.38
AIFU	$247.81 million	0.07	$62.33 million	$0.73	8.55

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

Summary

Lemonade beats AIFU 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 AIFU

AIX, Inc. engages in the provision of agency services and insurance claims adjusting services. It operates through the Insurance Agency and Claims Adjusting segments. The Insurance Agency segment includes providing agency services for insurance products and life insurance products. The Claims Adjusting segment provides pre-underwriting survey services, claims adjusting services, disposal of residual value services, loading and unloading supervision services, and consulting services. The company was founded by Yin An Hu and Qiu Ping Lai in 1998 and is headquartered in Guangzhou, China.