Hagerty, Inc. (HGTY) vs Lemonade, Inc. (LMND)

Hagerty, Inc. and Lemonade, Inc. are both Insurance Property & Casualty companies. Hagerty, Inc. is the larger, with a market value of $4.7B against $3.5B — 1.3× the size. Lemonade, Inc. has negative trailing earnings, so its P/E is not meaningful; Hagerty, Inc. trades at 84.8×. Lemonade, Inc. grew revenue faster over the last twelve months: 62.3% against 3.75%. Hagerty, Inc. has the higher net margin (1.25% vs −14.2%) and the higher return on invested capital (0.00% vs −25.6%). Across the 20 metrics below, Hagerty, Inc. leads on 18 and Lemonade, Inc. on 2.

Valuation

Metric HGTY LMND Insurance Property & Casualty median
P/E 84.81 n/m 10.29
P/S 0.98 3.55 1.17
P/B 2.13 6.92 1.83
Price to free cash flow 4.96 427.02 7.48
EV/EBITDA 2.03 n/m 7.49
EV/Sales 0.32 3.37 1.13
Earnings yield 1.18% (4.07%) 9.50%
Free cash flow yield 20.16% 0.23% 13.29%

Profitability

Metric HGTY LMND Insurance Property & Casualty median
Gross margin 100.00% 51.65% 41.16%
Operating margin 13.39% (13.67%) 15.09%
Net margin 1.25% (14.19%) 11.51%
Free cash flow margin 19.68% 0.83% 17.59%
Return on equity 2.88% (26.96%) 18.19%
Return on assets 0.84% (7.01%) 3.74%
Return on invested capital 0.00% (25.59%) 12.06%

Growth

Metric HGTY LMND Insurance Property & Casualty median
Revenue growth (TTM) 3.75% 62.31% 8.69%
EPS growth (last fiscal year) 270.00% 21.40% —
Revenue growth, 5-year CAGR 23.86% 50.87% 9.23%
Net income growth, 5-year CAGR 32.47% 0.00% 10.09%

Health

Metric HGTY LMND Insurance Property & Casualty median
Debt to equity 0.40 0.41 0.25
Current ratio 1.53 0.81 0.42
Net debt to EBITDA (3.42) 1.58 0.08

Dividend

Metric HGTY LMND Insurance Property & Casualty median
Dividend yield — — 2.79%
Payout ratio 0.00 0.00 0.27

Size

Metric HGTY LMND Insurance Property & Casualty median
Market cap 4.67b 3.53b 2.44b

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