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 $5.3B against $3.6B — 1.5× the size. Lemonade, Inc. has negative trailing earnings, so its P/E is not meaningful; Hagerty, Inc. trades at 95.6×. 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 19 metrics below, Hagerty, Inc. leads on 17 and Lemonade, Inc. on 2.

Valuation

Metric HGTY LMND Insurance Property & Casualty median
P/E 95.63 n/m 10.75
P/S 1.10 3.49 1.21
P/B 2.40 6.81 1.99
Price to free cash flow 5.59 420.09 7.76
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 1.05% (4.14%) 9.08%
Free cash flow yield 17.88% 0.24% 12.11%

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% 17.46%
Return on equity 2.88% (26.96%) 17.34%
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% 8.02%
EPS growth (last fiscal year) 270.00% 21.40% 39.61%
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 — — 1.50%
Payout ratio — — 0.14

Size

Metric HGTY LMND Insurance Property & Casualty median
Market cap 5.26b 3.55b 2.67b

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