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 $4.7B against $3.2B — 1.5× the size. Lemonade, Inc. has negative trailing earnings, so its P/E is not meaningful; Mercury General Corporation trades at 7.3×. Lemonade, Inc. grew revenue faster over the last twelve months: 69.5% against 5.42%. Mercury General Corporation has the higher net margin (10.5% vs −13.0%) and the higher return on invested capital (24.8% vs −27.5%). 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 7.28 12.17
P/S 2.88 0.76 1.26
P/B 6.82 1.67 1.85
Price to free cash flow 434.57 4.05 8.04
EV/EBITDA — — —
EV/Sales — — —
Earnings yield (4.53%) 13.73% 8.20%
Free cash flow yield 0.23% 24.70% 11.86%

Profitability

Metric LMND MCY Insurance Property & Casualty median
Gross margin 49.02% 21.11% 37.39%
Operating margin (12.56%) 13.37% 14.67%
Net margin (12.95%) 10.47% 10.16%
Free cash flow margin 0.66% 18.84% 18.60%
Return on equity (29.27%) 25.52% 16.59%
Return on assets (7.22%) 6.52% 3.38%
Return on invested capital (27.54%) 24.80% 9.43%

Growth

Metric LMND MCY Insurance Property & Casualty median
Revenue growth (TTM) 69.54% 5.42% 5.70%
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 0.49 0.20 0.25
Current ratio 0.81 0.35 0.49
Net debt to EBITDA 1.58 (0.97) 0.08

Dividend

Metric LMND MCY Insurance Property & Casualty median
Dividend yield — 1.50% 1.56%
Payout ratio — 0.11 0.15

Size

Metric LMND MCY Insurance Property & Casualty median
Market cap 3.21b 4.68b 2.64b

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