Reviewing Lemonade (NYSE:LMND) and M�nchener R�ckversicherungs-Gesellschaft (OTCMKTS:MURGY)

Lemonade (NYSE:LMND) and M�nchener R�ckversicherungs-Gesellschaft (OTCMKTS:MURGY) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, analyst recommendations, earnings, valuation, institutional ownership, dividends and profitability.

Valuation & Earnings

This table compares Lemonade and M�nchener R�ckversicherungs-Gesellschaft”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lemonade	$526.50 million	8.52	-$202.20 million	($2.83)	-21.46
M�nchener R�ckversicherungs-Gesellschaft	$65.83 billion	1.26	$6.15 billion	$2.17	5.83

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

Profitability

This table compares Lemonade and M�nchener R�ckversicherungs-Gesellschaft’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%
M�nchener R�ckversicherungs-Gesellschaft	8.37%	15.88%	1.79%

Analyst Ratings

This is a summary of recent recommendations for Lemonade and M�nchener R�ckversicherungs-Gesellschaft, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lemonade	4	1	1	1	1.86
M�nchener R�ckversicherungs-Gesellschaft	0	3	0	1	2.50

Lemonade currently has a consensus target price of $48.00, suggesting a potential downside of 20.95%. Given Lemonade’s higher probable upside, equities analysts clearly believe Lemonade is more favorable than M�nchener R�ckversicherungs-Gesellschaft.

Risk and Volatility

Lemonade has a beta of 2.24, indicating that its share price is 124% more volatile than the S&P 500. Comparatively, M�nchener R�ckversicherungs-Gesellschaft has a beta of 0.65, indicating that its share price is 35% less volatile than the S&P 500.

Institutional and Insider Ownership

80.3% of Lemonade shares are held by institutional investors. Comparatively, 0.2% of M�nchener R�ckversicherungs-Gesellschaft shares are held by institutional investors. 14.7% of Lemonade shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

M�nchener R�ckversicherungs-Gesellschaft beats Lemonade on 8 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 M�nchener R�ckversicherungs-Gesellschaft

Münchener Rückversicherungs-Gesellschaft Aktiengesellschaft in München engages in the insurance and reinsurance businesses worldwide. It also offers life and health reinsurance solutions, such as digital underwriting and advanced analytics solutions, health insurance management system, financial market risks, financing, portfolio risk management, digitalized investment-linked solution, MIRA digital suite, MIRA POS, MIRApply insured and physician, claims risk adjustment, CLARA plus, data analytics, underwriting and claims, medical research, capital management, and health market. The company also provides property and casualty reinsurance solutions, including agricultural risk, data analytics, infrastructure risk profiler, property insurance, retroactive reinsurance, insurance linked securities, location risk, risk transfer, and cyber, NatCatSERVICE for natural catastrophe loss database, REALYTIX ZERO, IMPROVEX, and cert2go, as well as consulting services for reinsurance, business advisory, portfolio performance and management, claims management, commercial motor, telematics, and electric vehicles. In addition, the company provides solutions for industry clients, such as IoT cover, earnings quality insurance protection, captive insurance and risk transfer, liability, weather risks, space and satellite insurance, solar and biomass insurance, wind insurance, digital asset, mining risks cover, construction projects covers and services, aviation insurance, power and utilities, industrial cyber insurance, risk suite, location risk intelligence, digital risks, PV warranty insurance, parametric, Insure AI, e-mobility, circular economy, liquidation damage cover, and natural catastrophes solutions. Further, it offers life, property-casualty, health, legal protection, and travel insurance products under the ERGO brand name; and insurance solutions for agriculture, captive, epidemic, cyber, and renewable energy. The company was founded in 1880 and is based in Munich, Germany.