Lemonade, Inc. (LMND) vs Selective Insurance Group, Inc. (SIGI)

Lemonade, Inc. and Selective Insurance Group, Inc. are both Insurance Property & Casualty companies. Selective Insurance Group, Inc. is the larger, with a market value of $5.1B against $3.5B — 1.4× the size. Lemonade, Inc. has negative trailing earnings, so its P/E is not meaningful; Selective Insurance Group, Inc. trades at 10.7×. Lemonade, Inc. grew revenue faster over the last twelve months: 62.3% against 7.01%. Selective Insurance Group, Inc. has the higher net margin (8.93% vs −14.2%) and the higher return on invested capital (9.36% vs −25.6%). Across the 20 metrics below, Selective Insurance Group, Inc. leads on 16 and Lemonade, Inc. on 4.

Valuation

Metric LMND SIGI Insurance Property & Casualty median
P/E n/m 10.68 10.29
P/S 3.55 0.94 1.17
P/B 6.92 1.48 1.83
Price to free cash flow 427.02 4.29 7.48
EV/EBITDA n/m 8.65 7.49
EV/Sales 3.37 1.13 1.13
Earnings yield (4.07%) 9.36% 9.50%
Free cash flow yield 0.23% 23.30% 13.29%

Profitability

Metric LMND SIGI Insurance Property & Casualty median
Gross margin 51.65% 41.16% 41.16%
Operating margin (13.67%) 12.46% 15.09%
Net margin (14.19%) 8.93% 11.51%
Free cash flow margin 0.83% 21.73% 17.59%
Return on equity (26.96%) 14.73% 18.19%
Return on assets (7.01%) 3.25% 3.74%
Return on invested capital (25.59%) 9.36% 12.06%

Growth

Metric LMND SIGI Insurance Property & Casualty median
Revenue growth (TTM) 62.31% 7.01% 8.69%
EPS growth (last fiscal year) 21.40% 131.89% —
Revenue growth, 5-year CAGR 50.87% 12.80% 9.23%
Net income growth, 5-year CAGR 0.00% 13.16% 10.09%

Health

Metric LMND SIGI Insurance Property & Casualty median
Debt to equity 0.41 0.25 0.25
Current ratio 0.81 0.25 0.42
Net debt to EBITDA 1.58 1.32 0.08

Dividend

Metric LMND SIGI Insurance Property & Casualty median
Dividend yield — 1.47% 2.79%
Payout ratio 0.00 0.27 0.27

Size

Metric LMND SIGI Insurance Property & Casualty median
Market cap 3.53b 5.11b 2.44b

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