Head to Head Comparison: Lemonade (NYSE:LMND) versus MetLife (NYSE:MET)

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

Insider and Institutional Ownership

80.3% of Lemonade shares are held by institutional investors. Comparatively, 95.0% of MetLife shares are held by institutional investors. 12.5% of Lemonade shares are held by insiders. Comparatively, 0.4% of MetLife shares are held 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.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lemonade	$526.50 million	10.52	-$202.20 million	($2.39)	-31.01
MetLife	$70.80 billion	0.70	$4.43 billion	$5.31	14.26

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

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Lemonade and MetLife, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lemonade	4	1	2	1	2.00
MetLife	0	2	10	1	2.92

Lemonade currently has a consensus price target of $58.57, suggesting a potential downside of 20.96%. MetLife has a consensus price target of $95.00, suggesting a potential upside of 25.44%. Given MetLife’s stronger consensus rating and higher probable upside, analysts clearly believe MetLife is more favorable than Lemonade.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Lemonade	-26.39%	-31.86%	-9.20%
MetLife	5.83%	19.88%	0.82%

Volatility & Risk

Lemonade has a beta of 2.27, suggesting that its share price is 127% more volatile than the S&P 500. Comparatively, MetLife has a beta of 0.87, suggesting that its share price is 13% less volatile than the S&P 500.

Summary

MetLife 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 MetLife

MetLife, Inc., a financial services company, provides insurance, annuities, employee benefits, and asset management services worldwide. It operates through six segments: Retirement and Income Solutions; Group Benefits; Asia; Latin America; Europe, the Middle East and Africa; and MetLife Holdings. The company offers life, dental, group short-and long-term disability, individual disability, pet insurance, accidental death and dismemberment, vision, and accident and health coverages, as well as prepaid legal plans; administrative services-only arrangements to employers; and general and separate account, and synthetic guaranteed interest contracts, as well as private floating rate funding agreements. It also provides pension risk transfers, institutional income annuities, structured settlements, and capital markets investment products; and other products and services, such as life insurance products and funding agreements for funding postretirement benefits, as well as company, bank, or trust-owned life insurance used to finance nonqualified benefit programs for executives. In addition, it provides fixed, indexed-linked, and variable annuities; pension products; regular savings products; whole and term life, endowments, universal and variable life, and group life products; longevity reinsurance solutions; credit insurance products; and protection against long-term health care services. MetLife, Inc. was incorporated in 1999 and is based in New York, New York.