Critical Analysis: Lemonade (NYSE:LMND) & Suncorp Group (OTCMKTS:SNMYF)

Lemonade (NYSE:LMND) and Suncorp Group (OTCMKTS:SNMYF) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their earnings, valuation, risk, institutional ownership, dividends, profitability and analyst recommendations.

Institutional & Insider Ownership

54.6% of Lemonade shares are owned by institutional investors. Comparatively, 30.6% of Suncorp Group shares are owned by institutional investors. 11.7% of Lemonade shares are owned by company 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.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Lemonade and Suncorp Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lemonade	3	3	0	0	1.50
Suncorp Group	0	0	0	0	N/A

Lemonade currently has a consensus target price of $17.06, indicating a potential upside of 35.96%. Given Lemonade’s higher probable upside, equities research analysts clearly believe Lemonade is more favorable than Suncorp Group.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lemonade	$256.70 million	3.41	-$297.80 million	($4.22)	-2.97
Suncorp Group	N/A	N/A	N/A	$0.57	15.23

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

Profitability

This table compares Lemonade and Suncorp Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lemonade	-79.54%	-34.23%	-17.31%
Suncorp Group	N/A	N/A	N/A

About Lemonade

Lemonade, Inc. provides various insurance products in the United States and Europe. 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 Suncorp Group

Suncorp Group Limited provides insurance and banking products and services to retail, corporate, and commercial customers in Australia and New Zealand. The company operates through Insurance (Australia), Suncorp Bank, and Suncorp New Zealand segments. The Insurance (Australia) segment provides general insurance products and services, including home and contents, motor, marine, travel, commercial property, industrial special risk, public liability and professional indemnity, workers' compensation, and compulsory third-party products, as well as distributes life insurance products. The Suncorp Bank segment offers banking services, such as commercial, agribusiness, small business, and home loans; savings and transaction accounts; foreign exchange services; and treasury products and services. The Suncorp New Zealand segment provides general and life insurance products comprising home and contents, motor, commercial property, public liability and professional indemnity, life, trauma, total and permanent disablement, and income protection. The company was formerly known as Suncorp-Metway Limited and changed its name to Suncorp Group Limited in December 2010. The company was founded in 1902 and is headquartered in Brisbane, Australia.