Analyzing Lemonade (NYSE:LMND) and Oxbridge Re (NASDAQ:OXBR)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Oxbridge Re	N/A	-133.14%	-96.54%
Lemonade	-48.14%	-30.30%	-13.36%

Insider and Institutional Ownership

5.6% of Oxbridge Re shares are held by institutional investors. Comparatively, 80.3% of Lemonade shares are held by institutional investors. 17.7% of Oxbridge Re shares are held by insiders. Comparatively, 12.5% of Lemonade 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.

Volatility and Risk

Oxbridge Re has a beta of 0.99, indicating that its share price is 1% 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.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Oxbridge Re	$850,000.00	23.97	-$9.91 million	($1.86)	-1.82
Lemonade	$429.80 million	3.70	-$236.90 million	($3.13)	-7.20

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

Analyst Recommendations

This is a breakdown of current ratings and price targets for Oxbridge Re and Lemonade, as reported by MarketBeat.

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

Lemonade has a consensus target price of $18.86, suggesting a potential downside of 16.34%. Given Lemonade’s higher probable upside, analysts clearly believe Lemonade is more favorable than Oxbridge Re.

Summary

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

About Oxbridge Re

Oxbridge Re Holdings Limited, through its subsidiaries, provides specialty property and casualty reinsurance solutions. The company underwrites collateralized reinsurance contracts primarily for property and casualty insurance companies in the Gulf Coast region of the United States. It also issues reinsurance contracts through digital securities by blockchain technology. In addition, the company offers fractional aircraft ownership, jet card, aircraft brokerage, and charter service through its fleet of private aircraft. It distributes its products and solutions through reinsurance brokers. Oxbridge Re Holdings Limited was incorporated in 2013 and is headquartered in George Town, the Cayman Islands.

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.