Goosehead Insurance (NASDAQ:GSHD – Get Free Report) and Lemonade (NYSE:LMND – Get Free Report) are both finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, earnings, analyst recommendations, institutional ownership, profitability, dividends and valuation.
Valuation & Earnings
This table compares Goosehead Insurance and Lemonade”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Goosehead Insurance | $365.30 million | 4.57 | $27.83 million | $1.14 | 41.11 |
| Lemonade | $737.90 million | 6.12 | -$165.50 million | ($1.87) | -31.45 |
Risk and Volatility
Goosehead Insurance has a beta of 1.52, indicating that its stock price is 52% more volatile than the S&P 500. Comparatively, Lemonade has a beta of 1.83, indicating that its stock price is 83% more volatile than the S&P 500.
Insider & Institutional Ownership
80.3% of Lemonade shares are owned by institutional investors. 38.1% of Goosehead Insurance shares are owned by insiders. Comparatively, 14.7% of Lemonade shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Analyst Recommendations
This is a summary of recent recommendations for Goosehead Insurance and Lemonade, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Goosehead Insurance | 2 | 5 | 7 | 0 | 2.36 |
| Lemonade | 3 | 2 | 5 | 0 | 2.20 |
Goosehead Insurance presently has a consensus target price of $65.09, indicating a potential upside of 38.88%. Lemonade has a consensus target price of $64.89, indicating a potential upside of 10.34%. Given Goosehead Insurance’s stronger consensus rating and higher probable upside, analysts clearly believe Goosehead Insurance is more favorable than Lemonade.
Profitability
This table compares Goosehead Insurance and Lemonade’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Goosehead Insurance | 7.94% | -20.96% | 8.50% |
| Lemonade | -16.44% | -26.52% | -7.18% |
Summary
Goosehead Insurance beats Lemonade on 10 of the 14 factors compared between the two stocks.
About Goosehead Insurance
Goosehead Insurance, Inc. operates as a holding company for Goosehead Financial, LLC that engages in the provision of personal lines insurance agency services in the United States. The company offers homeowner’s, automotive, dwelling property, flood, wind, earthquake, excess liability or umbrella, motorcycle, recreational vehicle, general liability, property, and life insurance products and services. As of December 31, 2023, it operated 1,415 franchise locations. The company was founded in 2003 and is headquartered in Westlake, Texas.
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.
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