The Hartford Financial Services Group (NYSE:HIG – Get Rating) and Lemonade (NYSE:LMND – Get Rating) are both finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, institutional ownership, earnings, risk, profitability, analyst recommendations and dividends.
Profitability
This table compares The Hartford Financial Services Group and Lemonade’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| The Hartford Financial Services Group | 8.12% | 18.15% | 3.44% |
| Lemonade | -116.01% | -33.69% | -18.73% |
Volatility and Risk
The Hartford Financial Services Group has a beta of 0.85, indicating that its share price is 15% less volatile than the S&P 500. Comparatively, Lemonade has a beta of 1.5, indicating that its share price is 50% more volatile than the S&P 500.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| The Hartford Financial Services Group | $22.36 billion | 0.97 | $1.82 billion | $5.45 | 12.76 |
| Lemonade | $256.70 million | 3.34 | -$297.80 million | ($4.61) | -2.69 |
The Hartford Financial Services Group has higher revenue and earnings than Lemonade. Lemonade is trading at a lower price-to-earnings ratio than The Hartford Financial Services Group, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of recent ratings and price targets for The Hartford Financial Services Group and Lemonade, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| The Hartford Financial Services Group | 0 | 6 | 7 | 0 | 2.54 |
| Lemonade | 2 | 3 | 0 | 0 | 1.60 |
The Hartford Financial Services Group currently has a consensus price target of $86.00, indicating a potential upside of 23.67%. Lemonade has a consensus price target of $20.44, indicating a potential upside of 64.95%. Given Lemonade’s higher possible upside, analysts plainly believe Lemonade is more favorable than The Hartford Financial Services Group.
Institutional and Insider Ownership
89.9% of The Hartford Financial Services Group shares are held by institutional investors. Comparatively, 67.7% of Lemonade shares are held by institutional investors. 1.8% of The Hartford Financial Services Group shares are held by insiders. Comparatively, 36.7% of Lemonade shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Summary
The Hartford Financial Services Group beats Lemonade on 10 of the 14 factors compared between the two stocks.
About The Hartford Financial Services Group
The Hartford Financial Services Group, Inc. is an insurance and financial services company. It operates through the following segments: Commercial Lines, Personal Lines, Property & Casualty Other Operations, Group Benefits, Hartford Funds, and Corporate. The Commercial Lines segment provides workers’ compensation, property, automobile, liability and umbrella coverage under several different products. The Personal Lines segment offers standard automobile, homeowners, and personal umbrella coverage to individuals. The Property & Casualty Other Operations segment includes certain property and casualty operations, managed by the company, that have discontinued writing new business and substantially all of the company’s asbestos and environmental exposures. The Group Benefits segment provides group life, accident, and disability coverage, as well as group retiree health and voluntary benefits. The Hartford Funds segment offers investment products for retail and retirement accounts and provides investment management and administrative services. The corporate segment includes corporate category discontinued operations, reserves for run-off structured settlement, and terminal funding agree
About Lemonade
Lemonade, Inc. provides various insurance products in the United States and Europe. Its insurance products include stolen or damaged property, and personal liability that protects its customers if they are responsible for an accident or damage to another person or their property. The company also offers renters, homeowners, pet, car, and life insurance products, as well as landlord insurance policies. In addition, it operates as an agent for other insurance companies. The company was formerly known as Lemonade Group, Inc. and changed its name to Lemonade, Inc. Lemonade, Inc. was incorporated in 2015 and is headquartered in New York, New York.
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