Financial Contrast: Allianz (OTCMKTS:ALIZY) and Lemonade (NYSE:LMND)

Allianz (OTCMKTS:ALIZY) and Lemonade (NYSE:LMND) are both finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, valuation, profitability, institutional ownership, risk, dividends and earnings.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Allianz	6.48%	19.92%	1.25%
Lemonade	-16.44%	-26.52%	-7.18%

Volatility & Risk

Allianz has a beta of 0.65, suggesting that its stock price is 35% less volatile than the S&P 500. Comparatively, Lemonade has a beta of 1.85, suggesting that its stock price is 85% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations for Allianz and Lemonade, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Allianz	1	2	2	1	2.50
Lemonade	3	1	5	0	2.22

Lemonade has a consensus target price of $64.89, suggesting a potential upside of 11.50%. Given Lemonade’s higher probable upside, analysts clearly believe Lemonade is more favorable than Allianz.

Valuation & Earnings

This table compares Allianz and Lemonade”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Allianz	$211.45 billion	0.80	$12.19 billion	$3.60	12.37
Lemonade	$737.90 million	6.06	-$165.50 million	($1.87)	-31.12

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

Institutional and Insider Ownership

0.0% of Allianz shares are held by institutional investors. Comparatively, 80.3% of Lemonade shares are held by institutional investors. 14.7% of Lemonade shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Allianz beats Lemonade on 9 of the 15 factors compared between the two stocks.

About Allianz

Allianz SE, together with its subsidiaries, provides property-casualty insurance, life/health insurance, and asset management products and services worldwide. The company’s Property-Casualty segment offers various insurance products, including motor liability and own damage, accident, general liability, fire and property, legal expense, credit, and travel to private and corporate customers. Its Life/Health segment provides a range of life and health insurance products on an individual and a group basis, such as annuities, endowment and term insurance, and unit-linked and investment-oriented products, as well as private and supplemental health, and long-term care insurance products. The company’s Asset Management segment offers institutional and retail asset management products and services to third-party investors comprising equity and fixed income funds, and multi-assets; and alternative investment products that include real estate, infrastructure debt/equity, real assets, liquid alternatives, and solutions. Its Corporate and Other segment provides banking services for retail clients, as well as digital investment services. Allianz SE was founded in 1890 and is headquartered in Munich, Germany.

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.