Lemonade (NYSE:LMND) and Maiden (NASDAQ:MHLD) Critical Review

Lemonade (NYSE:LMND) and Maiden (NASDAQ:MHLD) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, risk, valuation, dividends, analyst recommendations, earnings and profitability.

Institutional & Insider Ownership

33.3% of Lemonade shares are held by institutional investors. Comparatively, 26.9% of Maiden shares are held by institutional investors. 38.8% of Lemonade shares are held by insiders. Comparatively, 13.1% of Maiden shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Lemonade and Maiden’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Lemonade $94.40 million 42.95 -$122.30 million ($3.63) -18.15
Maiden $184.12 million 1.52 $41.76 million N/A N/A

Maiden has higher revenue and earnings than Lemonade.

Analyst Recommendations

This is a breakdown of recent ratings for Lemonade and Maiden, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Lemonade 3 2 3 0 2.00
Maiden 0 1 0 0 2.00

Lemonade currently has a consensus target price of $77.75, indicating a potential upside of 18.04%. Maiden has a consensus target price of $2.00, indicating a potential downside of 38.27%. Given Lemonade’s higher possible upside, research analysts plainly believe Lemonade is more favorable than Maiden.

Volatility & Risk

Lemonade has a beta of 2.01, suggesting that its stock price is 101% more volatile than the S&P 500. Comparatively, Maiden has a beta of 1.32, suggesting that its stock price is 32% more volatile than the S&P 500.

Profitability

This table compares Lemonade and Maiden’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Lemonade -188.22% -20.19% -14.65%
Maiden 22.02% -9.82% -0.54%

About Lemonade

Lemonade, Inc. provides various insurance products in the United States and Europe. Its insurance products cover 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, 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.

About Maiden

Maiden Holdings Ltd. engages in the provision of non-catastrophic, customized reinsurance products and services to small and mid-size insurance companies. It operates through the Diversified Reinsurance and AmTrust Reinsurance segments. The Diversified Reinsurance segment consists of a portfolio of property and casualty reinsurance business. The AmTrust Reinsurance segment includes business ceded by AmTrust to maiden Bermuda. The company was founded in 2007 and is headquartered in Hamilton, Bermuda.

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