Head to Head Comparison: Lemonade (NYSE:LMND) versus Assurant (NYSE:AIZ)

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

Risk & Volatility

Lemonade has a beta of 2.27, suggesting that its stock price is 127% more volatile than the S&P 500. Comparatively, Assurant has a beta of 0.55, suggesting that its stock price is 45% less volatile than the S&P 500.

Profitability

This table compares Lemonade and Assurant’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%
Assurant	5.83%	16.47%	2.47%

Institutional & Insider Ownership

80.3% of Lemonade shares are owned by institutional investors. Comparatively, 92.7% of Assurant shares are owned by institutional investors. 12.5% of Lemonade shares are owned by company insiders. Comparatively, 0.5% of Assurant shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Lemonade and Assurant”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lemonade	$526.50 million	7.21	-$202.20 million	($2.83)	-18.17
Assurant	$11.88 billion	0.92	$760.20 million	$13.81	15.61

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

Analyst Ratings

This is a summary of recent recommendations and price targets for Lemonade and Assurant, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lemonade	4	1	1	1	1.86
Assurant	1	0	7	1	2.89

Lemonade presently has a consensus target price of $41.14, suggesting a potential downside of 19.97%. Assurant has a consensus target price of $234.83, suggesting a potential upside of 8.94%. Given Assurant’s stronger consensus rating and higher possible upside, analysts clearly believe Assurant is more favorable than Lemonade.

Summary

Assurant beats Lemonade on 11 of the 14 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 Assurant

Assurant, Inc., together with its subsidiaries, provides business services that supports, protects, and connects consumer purchases in North America, Latin America, Europe, and the Asia Pacific. The company operates through two segments: Global Lifestyle and Global Housing. The Global Lifestyle segment offers mobile device solutions, and extended service contracts and related services for consumer electronics and appliances, and credit and other insurance products; and vehicle protection, commercial equipment, and other related services. The Global Housing segment provides lender-placed homeowners, manufactured housing, and flood insurance; renters insurance and related products; and voluntary manufactured housing, and condominium and homeowners insurance products. The company was formerly known as Fortis, Inc. and changed its name to Assurant, Inc. in February 2004. Assurant, Inc. was founded in 1892 and is headquartered in Atlanta, Georgia.