Lemonade, Inc. (LMND) vs Palomar Holdings, Inc. (PLMR)

Lemonade, Inc. and Palomar Holdings, Inc. are both Insurance Property & Casualty companies. Lemonade, Inc. and Palomar Holdings, Inc. are of similar size ($3.5B and $3.3B). Lemonade, Inc. has negative trailing earnings, so its P/E is not meaningful; Palomar Holdings, Inc. trades at 16.2×. Lemonade, Inc. grew revenue faster over the last twelve months: 62.3% against 60.0%. Palomar Holdings, Inc. has the higher net margin (18.6% vs −14.2%) and the higher return on invested capital (13.5% vs −25.6%). Across the 20 metrics below, Palomar Holdings, Inc. leads on 16 and Lemonade, Inc. on 4.

Valuation

Metric LMND PLMR Insurance Property & Casualty median
P/E n/m 16.17 10.29
P/S 3.55 2.99 1.17
P/B 6.92 3.33 1.83
Price to free cash flow 427.02 8.00 7.48
EV/EBITDA n/m 13.05 7.49
EV/Sales 3.37 3.25 1.13
Earnings yield (4.07%) 6.19% 9.50%
Free cash flow yield 0.23% 12.50% 13.29%

Profitability

Metric LMND PLMR Insurance Property & Casualty median
Gross margin 51.65% 24.87% 41.16%
Operating margin (13.67%) 24.87% 15.09%
Net margin (14.19%) 18.61% 11.51%
Free cash flow margin 0.83% 37.41% 17.59%
Return on equity (26.96%) 22.23% 18.19%
Return on assets (7.01%) 5.98% 3.74%
Return on invested capital (25.59%) 13.54% 12.06%

Growth

Metric LMND PLMR Insurance Property & Casualty median
Revenue growth (TTM) 62.31% 59.98% 8.69%
EPS growth (last fiscal year) 21.40% 60.04% —
Revenue growth, 5-year CAGR 50.87% 39.06% 9.23%
Net income growth, 5-year CAGR 0.00% 99.37% 10.09%

Health

Metric LMND PLMR Insurance Property & Casualty median
Debt to equity 0.41 0.30 0.25
Current ratio 0.81 0.50 0.42
Net debt to EBITDA 1.58 (0.41) 0.08

Dividend

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

Size

Metric LMND PLMR Insurance Property & Casualty median
Market cap 3.53b 3.31b 2.44b

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