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 $3.6B against $2.7B — 1.3× the size. Lemonade, Inc. has negative trailing earnings, so its P/E is not meaningful; Skyward Specialty Insurance Group, Inc. trades at 13.8×. 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 17 metrics below, Skyward Specialty Insurance Group, Inc. leads on 14 and Lemonade, Inc. on 3.

Valuation

Metric LMND SKWD Insurance Property & Casualty median
P/E n/m 13.81 10.75
P/S 3.49 1.57 1.21
P/B 6.81 2.14 1.99
Price to free cash flow 420.09 6.83 7.76
EV/EBITDA — — —
EV/Sales — — —
Earnings yield (4.14%) 7.24% 9.08%
Free cash flow yield 0.24% 14.65% 12.11%

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% 17.46%
Return on equity (26.96%) 17.34% 17.34%
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% 8.02%
EPS growth (last fiscal year) 21.40% 41.81% 39.61%
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 — — 1.50%
Payout ratio — — 0.14

Size

Metric LMND SKWD Insurance Property & Casualty median
Market cap 3.55b 2.67b 2.67b

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