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 $3.2B against $2.8B — 1.1× the size. Lemonade, Inc. has negative trailing earnings, so its P/E is not meaningful; Skyward Specialty Insurance Group, Inc. trades at 14.4×. Lemonade, Inc. grew revenue faster over the last twelve months: 69.5% against 38.3%. Skyward Specialty Insurance Group, Inc. has the higher net margin (10.8% vs −13.0%) and the higher return on invested capital (10.9% vs −27.5%). 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 14.37 12.17
P/S 2.88 1.63 1.26
P/B 6.82 2.23 1.85
Price to free cash flow 434.57 7.10 8.04
EV/EBITDA — — —
EV/Sales — — —
Earnings yield (4.53%) 6.96% 8.20%
Free cash flow yield 0.23% 14.08% 11.86%

Profitability

Metric LMND SKWD Insurance Property & Casualty median
Gross margin 49.02% 44.14% 37.39%
Operating margin (12.56%) 15.09% 14.67%
Net margin (12.95%) 10.84% 10.16%
Free cash flow margin 0.66% 23.20% 18.60%
Return on equity (29.27%) 17.34% 16.59%
Return on assets (7.22%) 3.38% 3.38%
Return on invested capital (27.54%) 10.89% 9.43%

Growth

Metric LMND SKWD Insurance Property & Casualty median
Revenue growth (TTM) 69.54% 38.27% 5.70%
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 0.49 0.33 0.25
Current ratio 0.81 0.52 0.49
Net debt to EBITDA 1.58 (0.43) 0.08

Dividend

Metric LMND SKWD Insurance Property & Casualty median
Dividend yield — — 1.56%
Payout ratio — — 0.15

Size

Metric LMND SKWD Insurance Property & Casualty median
Market cap 3.21b 2.84b 2.64b

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