Contrasting Lemonade (NYSE:LMND) and ICC (NASDAQ:ICCH)

ICC (NASDAQ:ICCH) and Lemonade (NYSE:LMND) are both small-cap finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, earnings, valuation, risk, profitability and dividends.

Insider and Institutional Ownership

46.5% of ICC shares are held by institutional investors. Comparatively, 80.3% of Lemonade shares are held by institutional investors. 24.1% of ICC shares are held by insiders. Comparatively, 12.5% of Lemonade shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ICC	$83.16 million	0.85	$4.26 million	$1.72	13.16
Lemonade	$429.80 million	3.71	-$236.90 million	($3.13)	-7.23

ICC has higher earnings, but lower revenue than Lemonade. Lemonade is trading at a lower price-to-earnings ratio than ICC, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent ratings and target prices for ICC and Lemonade, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ICC	0	0	0	0	N/A
Lemonade	3	4	1	0	1.75

Lemonade has a consensus price target of $18.86, indicating a potential downside of 16.64%. Given Lemonade’s higher probable upside, analysts plainly believe Lemonade is more favorable than ICC.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
ICC	5.91%	7.91%	2.43%
Lemonade	-48.14%	-30.30%	-13.36%

Volatility and Risk

ICC has a beta of 0.32, indicating that its share price is 68% less volatile than the S&P 500. Comparatively, Lemonade has a beta of 1.78, indicating that its share price is 78% more volatile than the S&P 500.

Summary

ICC beats Lemonade on 7 of the 13 factors compared between the two stocks.

About ICC

ICC Holdings, Inc., together with its subsidiaries, provides property and casualty insurance products to the food and beverage industry in the United States. It offers commercial multi-peril, liquor liability, workers' compensation, and umbrella liability insurance products. The company markets its products through independent agents in Arizona, Colorado, Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Ohio, Pennsylvania, Utah, and Wisconsin. ICC Holdings, Inc. was founded in 1950 and is headquartered in Rock Island, Illinois.

About Lemonade

Lemonade, Inc. provides various insurance products through various channels in the United States, Europe, and the United Kingdom. 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, car, 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.