Lemonade (NYSE:LMND – Get Free Report) and Safety Insurance Group (NASDAQ:SAFT – Get Free Report) are both small-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, earnings, institutional ownership, analyst recommendations, valuation, profitability and risk.
Profitability
This table compares Lemonade and Safety Insurance Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Lemonade | -64.12% | -32.41% | -15.67% |
| Safety Insurance Group | 3.47% | 2.83% | 1.12% |
Institutional and Insider Ownership
54.6% of Lemonade shares are owned by institutional investors. Comparatively, 79.7% of Safety Insurance Group shares are owned by institutional investors. 11.7% of Lemonade shares are owned by company insiders. Comparatively, 4.2% of Safety Insurance Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Risk and Volatility
Lemonade has a beta of 1.92, suggesting that its share price is 92% more volatile than the S&P 500. Comparatively, Safety Insurance Group has a beta of 0.2, suggesting that its share price is 80% less volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent ratings and price targets for Lemonade and Safety Insurance Group, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Lemonade | 3 | 4 | 0 | 0 | 1.57 |
| Safety Insurance Group | 0 | 0 | 0 | 0 | N/A |
Lemonade currently has a consensus price target of $13.29, indicating a potential downside of 19.24%. Given Lemonade’s higher possible upside, equities research analysts clearly believe Lemonade is more favorable than Safety Insurance Group.
Earnings and Valuation
This table compares Lemonade and Safety Insurance Group’s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Lemonade | $256.70 million | 4.48 | -$297.80 million | ($3.73) | -4.41 |
| Safety Insurance Group | $797.56 million | 1.46 | $46.56 million | $2.11 | 37.44 |
Safety Insurance Group has higher revenue and earnings than Lemonade. Lemonade is trading at a lower price-to-earnings ratio than Safety Insurance Group, indicating that it is currently the more affordable of the two stocks.
Summary
Safety Insurance Group beats Lemonade on 8 of the 12 factors compared between the two stocks.
About Lemonade
(Get Free Report)
Lemonade, Inc. provides various insurance products in the United States and Europe. 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 Safety Insurance Group
(Get Free Report)
Safety Insurance Group, Inc. provides private passenger and commercial automobile, and homeowner insurance in the United States. The company’s private passenger automobile policies offer coverage for bodily injury and property damage to others, no-fault personal injury coverage for the insured/insured’s car occupants, and physical damage coverage for an insured’s own vehicle for collision or other perils. It also provides commercial automobile policies that offer insurance for commercial vehicles used for business purposes, including private passenger-type vehicles, trucks, tractors and trailers, insure individual vehicles, and commercial fleets; and homeowners policies, which provide coverage for homes, condominiums, and apartments for losses to a dwelling and its contents from various perils, and coverage for liability to others arising from ownership or occupancy. In addition, the company offers business owners policies that cover apartments and residential condominiums, restaurants, office condominiums, processing and services businesses, special trade contractors, and wholesalers. Further, it provides personal umbrella policies, which provide personal excess liability coverage over and above the limits of individual automobile, watercraft, and homeowner’s insurance policies; and commercial umbrella and business owner policies, as well as underwrites dwelling fire insurance for non-owner-occupied residences. Additionally, the company offers inland marine coverage for homeowners and business owner policies, and watercraft coverage for small and medium sized pleasure crafts. It distributes its products through independent agents. The company was formerly known as Safety Holdings Inc and changed its name to Safety Insurance Group, Inc. in April 2002. The company was founded in 1979 and is headquartered in Boston, Massachusetts.
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