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

Lemonade, Inc. and Palomar Holdings, Inc. are both Insurance Property & Casualty companies. Palomar Holdings, Inc. is the larger, with a market value of $3.7B against $3.2B — 1.2× the size. Lemonade, Inc. has negative trailing earnings, so its P/E is not meaningful; Palomar Holdings, Inc. trades at 18.5×. 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 19 metrics below, Palomar Holdings, Inc. leads on 14 and Lemonade, Inc. on 5.

Valuation

Metric LMND PLMR Insurance Property & Casualty median
P/E n/m 18.55 11.87
P/S 3.27 3.43 1.26
P/B 6.38 3.82 1.99
Price to free cash flow 393.19 9.18 8.12
EV/EBITDA — — —
EV/Sales — — —
Earnings yield (4.42%) 5.39% 8.04%
Free cash flow yield 0.25% 10.89% 11.85%

Profitability

Metric LMND PLMR Insurance Property & Casualty median
Gross margin 51.65% 24.87% 41.66%
Operating margin (13.67%) 24.87% 14.71%
Net margin (14.19%) 18.61% 10.84%
Free cash flow margin 0.83% 37.41% 17.46%
Return on equity (26.96%) 22.23% 16.87%
Return on assets (7.01%) 5.98% 3.57%
Return on invested capital (25.59%) 13.54% 12.03%

Growth

Metric LMND PLMR Insurance Property & Casualty median
Revenue growth (TTM) 62.31% 59.98% 5.92%
EPS growth (last fiscal year) 21.40% 60.04% 39.61%
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 — 0.32% 1.44%
Payout ratio — 0.06 0.14

Size

Metric LMND PLMR Insurance Property & Casualty median
Market cap 3.20b 3.74b 2.61b

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