Financial Survey: Lemonade (NYSE:LMND) vs. W. R. Berkley (NYSE:WRB)

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

Earnings & Valuation

This table compares Lemonade and W. R. Berkley”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lemonade	$471.10 million	2.83	-$236.90 million	($2.97)	-6.31
W. R. Berkley	$13.16 billion	1.69	$1.38 billion	$3.76	15.43

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

Analyst Ratings

This is a breakdown of recent recommendations for Lemonade and W. R. Berkley, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lemonade	2	4	1	0	1.86
W. R. Berkley	1	6	5	0	2.33

Lemonade presently has a consensus price target of $20.17, indicating a potential upside of 7.61%. W. R. Berkley has a consensus price target of $63.08, indicating a potential upside of 8.73%. Given W. R. Berkley’s stronger consensus rating and higher possible upside, analysts plainly believe W. R. Berkley is more favorable than Lemonade.

Profitability

This table compares Lemonade and W. R. Berkley’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lemonade	-44.24%	-30.34%	-12.55%
W. R. Berkley	12.05%	21.34%	4.26%

Volatility & Risk

Lemonade has a beta of 1.77, suggesting that its stock price is 77% more volatile than the S&P 500. Comparatively, W. R. Berkley has a beta of 0.62, suggesting that its stock price is 38% less volatile than the S&P 500.

Insider & Institutional Ownership

80.3% of Lemonade shares are owned by institutional investors. Comparatively, 68.8% of W. R. Berkley shares are owned by institutional investors. 12.5% of Lemonade shares are owned by insiders. Comparatively, 23.0% of W. R. Berkley shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

W. R. Berkley beats Lemonade on 11 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 W. R. Berkley

W. R. Berkley Corporation, an insurance holding company, operates as a commercial lines writers worldwide. It operates in two segments, Insurance and Reinsurance & Monoline Excess. The Insurance segment underwrites commercial insurance business, including excess and surplus lines, admitted lines, and specialty personal lines. This segment also provides accident and health insurance and reinsurance products; insurance for commercial risks; casualty and specialty environmental products; specialized insurance coverages for fine arts and jewelry exposures; excess liability and inland marine coverage for small to medium-sized insureds; and commercial general liability, umbrella, professional liability, directors and officers, commercial property, and surety products, as well as products for technology, and life sciences and travel industries. In addition, this segment offers cyber risk solutions; crime and fidelity insurance products; medical professional coverages; workers' compensation insurance products; general insurance; personal lines insurance solutions, including home, condo/co-op, auto, and collectibles; automobile, law enforcement, public officials and educator's legal, and employment practices liability, as well as incidental medical and property and crime insurance products; at-risk and alternative risk insurance program management services; professional liability; energy and marine risks; and provides insurance products to the Lloyd's marketplace. The Reinsurance & Monoline Excess segment provides treaty and facultative reinsurance solutions; property and casualty reinsurance; facultative reinsurance products include automatic, semi-automatic and individual risk assumed reinsurance; and turnkey products such as cyber, employment practices liability insurance, liquor liability insurance and violent events. The company was founded in 1967 and is headquartered in Greenwich, Connecticut.