Sompo (OTCMKTS:SMPNY – Get Free Report) and Lemonade (NYSE:LMND – Get Free Report) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, dividends, risk, valuation, profitability, analyst recommendations and institutional ownership.
Profitability
This table compares Sompo and Lemonade’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Sompo | 8.14% | 13.04% | 2.83% |
| Lemonade | -26.39% | -31.86% | -9.20% |
Analyst Recommendations
This is a summary of current ratings and target prices for Sompo and Lemonade, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Sompo | 0 | 0 | 0 | 0 | 0.00 |
| Lemonade | 4 | 1 | 1 | 1 | 1.86 |
Volatility and Risk
Sompo has a beta of 0.39, suggesting that its stock price is 61% less volatile than the S&P 500. Comparatively, Lemonade has a beta of 2.26, suggesting that its stock price is 126% more volatile than the S&P 500.
Insider and Institutional Ownership
80.3% of Lemonade shares are held by institutional investors. 12.5% of Lemonade shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Earnings and Valuation
This table compares Sompo and Lemonade”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Sompo | $35.81 billion | 0.77 | $2.79 billion | $1.49 | 9.94 |
| Lemonade | $526.50 million | 9.54 | -$202.20 million | ($2.39) | -28.11 |
Sompo has higher revenue and earnings than Lemonade. Lemonade is trading at a lower price-to-earnings ratio than Sompo, indicating that it is currently the more affordable of the two stocks.
Summary
Lemonade beats Sompo on 8 of the 15 factors compared between the two stocks.
About Sompo
Sompo Holdings, Inc. provides property and casualty (P&C) insurance services in Japan and internationally. The company operates through Domestic P&C Insurance Business, Overseas Insurance Business, Domestic Life Insurance Business, and Nursing Care & Seniors Business segments. It offers various P&C insurance products, including automobile, fire, personal accident, and marine, as well as security, risk management, assistance, and warranty services; and life insurance products. The company also provides nursing care and seniors services; and customer security, health, and wellbeing support services. In addition, it offers asset management services; home remodeling services; and health support services comprising health guidance and employee assistance programs. The company was formerly known as Sompo Japan Nipponkoa Holdings, Inc. and changed its name to Sompo Holdings, Inc. in October 2016. The company was incorporated in 2010 and is headquartered in Tokyo, Japan.
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.
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