Lemonade, Inc. (LMND) vs Mercury General Corporation (MCY)

Lemonade, Inc. and Mercury General Corporation are both Insurance Property & Casualty companies. Mercury General Corporation is the larger, with a market value of $5.6B against $3.6B — 1.6× the size. Lemonade, Inc. has negative trailing earnings, so its P/E is not meaningful; Mercury General Corporation trades at 6.1×. Lemonade, Inc. grew revenue faster over the last twelve months: 62.3% against 9.95%. Mercury General Corporation has the higher net margin (14.8% vs −14.2%) and the higher return on invested capital (35.8% vs −25.6%). Across the 19 metrics below, Mercury General Corporation leads on 14 and Lemonade, Inc. on 5.

Valuation

Metric LMND MCY Insurance Property & Casualty median
P/E n/m 6.08 10.75
P/S 3.49 0.90 1.21
P/B 6.81 2.01 1.99
Price to free cash flow 420.09 4.43 7.76
EV/EBITDA — — —
EV/Sales — — —
Earnings yield (4.14%) 16.46% 9.08%
Free cash flow yield 0.24% 22.57% 12.11%

Profitability

Metric LMND MCY Insurance Property & Casualty median
Gross margin 51.65% 26.12% 41.16%
Operating margin (13.67%) 18.78% 15.09%
Net margin (14.19%) 14.77% 11.51%
Free cash flow margin 0.83% 20.26% 17.46%
Return on equity (26.96%) 38.99% 17.34%
Return on assets (7.01%) 9.55% 3.74%
Return on invested capital (25.59%) 35.81% 12.06%

Growth

Metric LMND MCY Insurance Property & Casualty median
Revenue growth (TTM) 62.31% 9.95% 8.02%
EPS growth (last fiscal year) 21.40% 15.62% 39.61%
Revenue growth, 5-year CAGR 50.87% 9.63% 9.23%
Net income growth, 5-year CAGR 0.00% 7.63% 10.09%

Health

Metric LMND MCY Insurance Property & Casualty median
Debt to equity 0.41 0.33 0.25
Current ratio 0.81 0.42 0.42
Net debt to EBITDA 1.58 (0.97) 0.08

Dividend

Metric LMND MCY Insurance Property & Casualty median
Dividend yield — 1.24% 1.50%
Payout ratio — 0.08 0.14

Size

Metric LMND MCY Insurance Property & Casualty median
Market cap 3.55b 5.64b 2.67b

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