Sun Life Financial (NYSE:SLF – Get Free Report) and Lemonade (NYSE:LMND – Get Free Report) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their risk, valuation, institutional ownership, earnings, analyst recommendations, dividends and profitability.
Valuation and Earnings
This table compares Sun Life Financial and Lemonade”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Sun Life Financial | $29.99 billion | 1.43 | $2.68 billion | $4.28 | 18.07 |
| Lemonade | $737.90 million | 4.74 | -$165.50 million | ($1.83) | -24.70 |
Profitability
This table compares Sun Life Financial and Lemonade’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Sun Life Financial | 7.66% | 17.96% | 1.08% |
| Lemonade | -14.19% | -26.78% | -7.08% |
Risk & Volatility
Sun Life Financial has a beta of 0.89, indicating that its share price is 11% less volatile than the S&P 500. Comparatively, Lemonade has a beta of 1.87, indicating that its share price is 87% more volatile than the S&P 500.
Institutional & Insider Ownership
52.3% of Sun Life Financial shares are owned by institutional investors. Comparatively, 80.3% of Lemonade shares are owned by institutional investors. 12.2% of Lemonade shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Analyst Recommendations
This is a summary of current ratings and target prices for Sun Life Financial and Lemonade, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Sun Life Financial | 1 | 5 | 5 | 1 | 2.50 |
| Lemonade | 1 | 4 | 4 | 0 | 2.33 |
Sun Life Financial currently has a consensus price target of $103.50, suggesting a potential upside of 33.86%. Lemonade has a consensus price target of $63.50, suggesting a potential upside of 40.48%. Given Lemonade’s higher possible upside, analysts plainly believe Lemonade is more favorable than Sun Life Financial.
Summary
Sun Life Financial beats Lemonade on 10 of the 15 factors compared between the two stocks.
About Sun Life Financial
Sun Life Financial Inc., a financial services company, provides savings, retirement, and pension products worldwide. The company operates in five segments: Asset Management, Canada, U.S., Asia, and Corporate. It offers various insurance products, such as term and permanent life; personal health, which includes prescription drugs, dental, and vision care; critical illness; long-term care; and disability, as well as reinsurance. The company also provides advice for financial planning and retirement planning services; investments products, such as mutual funds, segregated funds, and annuities; and asset and investment management products consisting of pooled funds, institutional portfolios, and pension funds. In addition, it offers real estate services; manages equity capital in various private and listed funds, as well as mezzanine debt, middle market direct lending, high-yield bonds, and syndicated loans; and operates as an investment grade fixed income investor, real estate investment management advisor, infrastructure investment manager, and alternative credit investment manager. The company was formerly known as Sun Life Financial Services of Canada Inc. and changed its name to Sun Life Financial Inc. in July 2003. Sun Life Financial Inc. was founded in 1871 and is headquartered in Toronto, Canada.
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.
Receive News & Ratings for Sun Life Financial Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Sun Life Financial and related companies with MarketBeat.com's FREE daily email newsletter.
