Analyzing Fidelis Insurance (NYSE:FIHL) & Lemonade (NYSE:LMND)

Lemonade (NYSE:LMND) and Fidelis Insurance (NYSE:FIHL) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, valuation, analyst recommendations, dividends, earnings and profitability.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Lemonade	-48.14%	-30.30%	-13.36%
Fidelis Insurance	59.30%	20.23%	4.22%

Earnings & Valuation

This table compares Lemonade and Fidelis Insurance’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lemonade	$429.80 million	2.74	-$236.90 million	($3.13)	-5.34
Fidelis Insurance	$3.60 billion	0.62	$2.13 billion	$19.07	0.99

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

Analyst Ratings

This is a summary of current ratings and recommmendations for Lemonade and Fidelis Insurance, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lemonade	3	4	1	0	1.75
Fidelis Insurance	0	4	4	0	2.50

Lemonade currently has a consensus price target of $18.86, indicating a potential upside of 12.88%. Fidelis Insurance has a consensus price target of $18.44, indicating a potential downside of 2.03%. Given Lemonade’s higher possible upside, research analysts plainly believe Lemonade is more favorable than Fidelis Insurance.

Institutional and Insider Ownership

80.3% of Lemonade shares are held by institutional investors. Comparatively, 82.0% of Fidelis Insurance shares are held by institutional investors. 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 company will outperform the market over the long term.

Summary

Fidelis Insurance beats Lemonade on 10 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 Fidelis Insurance

Fidelis Insurance Holdings Limited, together with its subsidiaries, provides insurance and reinsurance products in Bermuda, the Republic of Ireland, and the United Kingdom. It operates in three segments: Specialty, Reinsurance, and Bespoke segments. The Specialty segment offers aviation and aerospace, energy, marine, property direct and facultative, and other specialty risk solutions. The Reinsurance segment provides property, retrocession, and whole account reinsurance solutions. The Bespoke segment offers customized risk solutions for clients that include credit and political risk, and other risk transfer opportunities, including political violence and terrorism, limited cyber reinsurance, tax liabilities, title, transactional liabilities, and other bespoke solutions. Fidelis Insurance Holdings Limited was incorporated in 2014 and is headquartered in Pembroke, Bermuda.