Lemonade, Inc. (LMND) vs Skyward Specialty Insurance Group, Inc. (SKWD)

Lemonade, Inc. and Skyward Specialty Insurance Group, Inc. are both Insurance Property & Casualty companies. Lemonade, Inc. is the larger, with a market value of $3.5B against $2.4B — 1.4× the size. Lemonade, Inc. has negative trailing earnings, so its P/E is not meaningful; Skyward Specialty Insurance Group, Inc. trades at 12.4×. Lemonade, Inc. grew revenue faster over the last twelve months: 62.3% against 38.3%. Skyward Specialty Insurance Group, Inc. has the higher net margin (10.8% vs −14.2%) and the higher return on invested capital (10.9% vs −25.6%). Across the 18 metrics below, Skyward Specialty Insurance Group, Inc. leads on 15 and Lemonade, Inc. on 3.

Valuation

Metric LMND SKWD Insurance Property & Casualty median
P/E n/m 12.39 10.29
P/S 3.55 1.41 1.17
P/B 6.92 1.92 1.83
Price to free cash flow 427.02 6.13 7.48
EV/EBITDA n/m 9.76 7.49
EV/Sales 3.37 1.47 1.13
Earnings yield (4.07%) 8.07% 9.50%
Free cash flow yield 0.23% 16.33% 13.29%

Profitability

Metric LMND SKWD Insurance Property & Casualty median
Gross margin 51.65% 44.14% 41.16%
Operating margin (13.67%) 15.09% 15.09%
Net margin (14.19%) 10.84% 11.51%
Free cash flow margin 0.83% 23.20% 17.59%
Return on equity (26.96%) 17.34% 18.19%
Return on assets (7.01%) 3.38% 3.74%
Return on invested capital (25.59%) 10.89% 12.06%

Growth

Metric LMND SKWD Insurance Property & Casualty median
Revenue growth (TTM) 62.31% 38.27% 8.69%
EPS growth (last fiscal year) 21.40% 41.81% —
Revenue growth, 5-year CAGR 50.87% — 9.23%
Net income growth, 5-year CAGR 0.00% — 10.09%

Health

Metric LMND SKWD Insurance Property & Casualty median
Debt to equity 0.41 0.33 0.25
Current ratio 0.81 0.52 0.42
Net debt to EBITDA 1.58 (0.43) 0.08

Dividend

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

Size

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

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