Head-To-Head Comparison: Lemonade (NYSE:LMND) versus Universal Insurance (NYSE:UVE)

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

Earnings & Valuation

This table compares Lemonade and Universal Insurance”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lemonade	$526.50 million	4.78	-$236.90 million	($2.85)	-12.13
Universal Insurance	$1.52 billion	0.39	$66.82 million	$1.99	10.71

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

Analyst Ratings

This is a summary of recent ratings for Lemonade and Universal Insurance, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lemonade	3	2	1	0	1.67
Universal Insurance	0	0	1	0	3.00

Lemonade presently has a consensus price target of $31.00, suggesting a potential downside of 10.31%. Universal Insurance has a consensus price target of $25.00, suggesting a potential upside of 17.31%. Given Universal Insurance’s stronger consensus rating and higher possible upside, analysts plainly believe Universal Insurance is more favorable than Lemonade.

Risk & Volatility

Lemonade has a beta of 2.12, suggesting that its share price is 112% more volatile than the S&P 500. Comparatively, Universal Insurance has a beta of 0.84, suggesting that its share price is 16% less volatile than the S&P 500.

Institutional and Insider Ownership

80.3% of Lemonade shares are owned by institutional investors. Comparatively, 66.6% of Universal Insurance shares are owned by institutional investors. 12.5% of Lemonade shares are owned by insiders. Comparatively, 17.5% of Universal Insurance shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Lemonade	-43.51%	-32.85%	-12.59%
Universal Insurance	4.82%	15.43%	2.37%

Summary

Universal Insurance beats Lemonade on 10 of the 13 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 Universal Insurance

Universal Insurance Holdings, Inc., together with its subsidiaries, operates as an integrated insurance holding company in the United States. It develops, markets, and underwrites insurance products for personal residential insurance, such as homeowners, renters/tenants, condo unit owners, and dwelling/fire; and offers allied lines, coverage for other structures, and personal property, liability, and personal articles coverages. The company also advises on actuarial issues, oversees distribution, administers claims payments, performs policy administration and underwriting, and assists with reinsurance negotiations; places and manages reinsurance programs for the insurance entities; and operates Clovered.com, a digital agency for various carrier partners and utilization of digital applications for adjusting claims. It offers its products through a network of independent agents, as well as direct-to-consumer online solutions, including digital insurance agency. The company was formerly known as Universal Heights, Inc. and changed its name to Universal Insurance Holdings, Inc. in January 2001. Universal Insurance Holdings, Inc. was incorporated in 1990 and is headquartered in Fort Lauderdale, Florida.