Critical Survey: Crawford & Company (NYSE:CRD.A) versus Lemonade (NYSE:LMND)

Lemonade (NYSE:LMND) and Crawford & Company (NYSE:CRD.A) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, earnings, dividends, institutional ownership, profitability, analyst recommendations and risk.

Valuation and Earnings

This table compares Lemonade and Crawford & Company”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lemonade	$737.90 million	5.78	-$165.50 million	($1.83)	-30.09
Crawford & Company	$1.31 billion	0.50	$19.63 million	$0.47	28.47

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

Insider & Institutional Ownership

80.3% of Lemonade shares are owned by institutional investors. Comparatively, 22.6% of Crawford & Company shares are owned by institutional investors. 12.2% of Lemonade shares are owned by company insiders. Comparatively, 54.3% of Crawford & Company shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Lemonade and Crawford & Company, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lemonade	1	4	4	0	2.33
Crawford & Company	0	0	1	0	3.00

Lemonade presently has a consensus price target of $64.50, indicating a potential upside of 17.12%. Crawford & Company has a consensus price target of $14.00, indicating a potential upside of 4.63%. Given Lemonade’s higher possible upside, analysts plainly believe Lemonade is more favorable than Crawford & Company.

Profitability

This table compares Lemonade and Crawford & Company’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lemonade	-14.19%	-26.78%	-7.08%
Crawford & Company	1.81%	28.15%	6.51%

Volatility & Risk

Lemonade has a beta of 1.87, suggesting that its stock price is 87% more volatile than the S&P 500. Comparatively, Crawford & Company has a beta of 0.83, suggesting that its stock price is 17% less volatile than the S&P 500.

Summary

Crawford & Company beats Lemonade on 9 of the 14 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 Crawford & Company

Crawford & Company provides claims management and outsourcing solutions to the risk management and insurance industry, and self-insured entities. The company's Crawford Claims Solutions segment offers claims management services related to property, casualty, and catastrophe losses caused by physical damage to commercial and residential real properties, and personal properties, as well as marine losses. It also offers services in the areas of field investigation, catastrophe, evaluation, and resolution of property and casualty insurance claims; and various on-demand inspection, verification, and other task specific field services for businesses and consumers through a mobile platform. Its Crawford TPA Solutions segment provides claims and risk management services; desktop claim adjusting and claims evaluation services; initial loss reporting services for claimants; loss mitigation services, such as medical bill review and case management, and vocational rehabilitation services; and risk management information services, as well as administers trust funds established to pay claims. It offers services for workers' compensation, auto and liability, disability absence and medical management, and accident and health markets. The company's Crawford Specialty Solutions segment offers claims management services related to large and complex losses in various industries, such as commercial property, aviation, forensic accounting, marine and transportation, retail, building and construction, cyber, and energy. It also provides a customer-centric solution for various loss types comprising high-frequency and low-complexity claims, and large complex repairs; and outsourced contractor management services to personal and commercial insurance carriers, and consumer markets. The company operates in the United States, the United Kingdom and the rest of Europe, Canada, Australia, and internationally. Crawford & Company was founded in 1941 and is based in Peachtree Corners, Georgia.