Critical Review: International General Insurance (NASDAQ:IGIC) versus Lemonade (NYSE:LMND)

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

Valuation and Earnings

This table compares Lemonade and International General Insurance”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lemonade	$737.90 million	5.20	-$165.50 million	($1.83)	-27.11
International General Insurance	$516.90 million	2.13	$127.15 million	$2.49	10.34

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

Institutional and Insider Ownership

80.3% of Lemonade shares are owned by institutional investors. Comparatively, 54.2% of International General Insurance shares are owned by institutional investors. 12.2% of Lemonade shares are owned by insiders. Comparatively, 20.1% of International General Insurance shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Lemonade and International General Insurance’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lemonade	-14.19%	-26.78%	-7.08%
International General Insurance	20.68%	17.03%	5.45%

Analyst Recommendations

This is a summary of current ratings and target prices for Lemonade and International General Insurance, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lemonade	1	4	4	0	2.33
International General Insurance	1	0	2	0	2.33

Lemonade presently has a consensus target price of $64.50, suggesting a potential upside of 30.01%. International General Insurance has a consensus target price of $30.00, suggesting a potential upside of 16.46%. Given Lemonade’s higher probable upside, analysts clearly believe Lemonade is more favorable than International General Insurance.

Volatility and Risk

Lemonade has a beta of 1.87, suggesting that its share price is 87% more volatile than the S&P 500. Comparatively, International General Insurance has a beta of 0.09, suggesting that its share price is 91% less volatile than the S&P 500.

Summary

International General Insurance beats Lemonade on 7 of the 13 factors compared between the two stocks.

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.

About International General Insurance

International General Insurance Holdings Ltd. engages in the provision of specialty insurance and reinsurance solutions worldwide. The company operates through three segments: Specialty Long-tail, Specialty Short-tail, and Reinsurance. It is involved in underwriting a portfolio of specialty risks, including energy, property, construction and engineering, ports and terminals, general aviation, political violence, professional lines, financial institutions, motor, marine liability, contingency, marine, treaty, and casualty insurance and reinsurance. The company was founded in 2001 and is based in Amman, Jordan.