Head-To-Head Contrast: Universal Insurance (NYSE:UVE) & Lemonade (NYSE:LMND)

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

Profitability

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

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

Insider and Institutional Ownership

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

Volatility and Risk

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

Earnings & Valuation

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

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

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 breakdown of recent ratings and target prices for Universal Insurance and Lemonade, as provided by MarketBeat.com.

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

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

Summary

Universal Insurance beats Lemonade on 10 of the 13 factors compared between the two stocks.

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.

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.