Reviewing Prudential Public (NYSE:PUK) & Lemonade (NYSE:LMND)

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

Insider & Institutional Ownership

80.3% of Lemonade shares are owned by institutional investors. Comparatively, 1.9% of Prudential Public shares are owned by institutional investors. 14.7% of Lemonade shares are owned by insiders. Comparatively, 0.1% of Prudential Public 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Lemonade	-26.39%	-31.86%	-9.20%
Prudential Public	N/A	N/A	N/A

Analyst Recommendations

This is a summary of current ratings and price targets for Lemonade and Prudential Public, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lemonade	3	2	4	0	2.11
Prudential Public	0	1	5	0	2.83

Lemonade currently has a consensus price target of $71.50, indicating a potential downside of 16.17%. Given Lemonade’s higher probable upside, research analysts clearly believe Lemonade is more favorable than Prudential Public.

Volatility and Risk

Lemonade has a beta of 1.98, suggesting that its share price is 98% more volatile than the S&P 500. Comparatively, Prudential Public has a beta of 0.78, suggesting that its share price is 22% less volatile than the S&P 500.

Valuation & Earnings

This table compares Lemonade and Prudential Public”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lemonade	$526.50 million	12.11	-$202.20 million	($2.39)	-35.69
Prudential Public	$16.66 billion	2.41	$2.29 billion	N/A	N/A

Prudential Public has higher revenue and earnings than Lemonade.

Summary

Prudential Public beats Lemonade on 7 of the 12 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 Prudential Public

Prudential plc, through its subsidiaries, provides life and health insurance, and asset management solutions to individuals in Asia and Africa. The company was founded in 1848 and is headquartered in Central, Hong Kong.