Lemonade (NYSE:LMND – Get Free Report) and Atlantic American (NASDAQ:AAME – Get Free Report) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, profitability, valuation, institutional ownership, analyst recommendations, risk and dividends.
Earnings & Valuation
This table compares Lemonade and Atlantic American”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Lemonade | $975.00 million | 3.15 | -$165.50 million | ($1.88) | -21.12 |
| Atlantic American | $210.44 million | 0.11 | $6.02 million | $0.26 | 4.31 |
Atlantic American has lower revenue, but higher earnings than Lemonade. Lemonade is trading at a lower price-to-earnings ratio than Atlantic American, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
80.3% of Lemonade shares are held by institutional investors. Comparatively, 5.5% of Atlantic American shares are held by institutional investors. 12.2% of Lemonade shares are held by company insiders. Comparatively, 57.4% of Atlantic American shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Risk and Volatility
Lemonade has a beta of 1.98, meaning that its stock price is 98% more volatile than the S&P 500. Comparatively, Atlantic American has a beta of 0.87, meaning that its stock price is 13% less volatile than the S&P 500.
Profitability
This table compares Lemonade and Atlantic American’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Lemonade | -12.95% | -28.59% | -7.24% |
| Atlantic American | N/A | N/A | N/A |
Analyst Recommendations
This is a summary of current recommendations and price targets for Lemonade and Atlantic American, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Lemonade | 1 | 4 | 4 | 0 | 2.33 |
| Atlantic American | 1 | 0 | 0 | 0 | 1.00 |
Lemonade currently has a consensus price target of $61.12, indicating a potential upside of 53.97%. Given Lemonade’s stronger consensus rating and higher probable upside, equities analysts clearly believe Lemonade is more favorable than Atlantic American.
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 Atlantic American
Atlantic American Corporation, through its subsidiaries, provides life and health, and property and casualty insurance products in the United States. It operates through American Southern and Bankers Fidelity segments. The company offers property and casualty insurance products, including commercial automobile insurance coverage for state governments, local municipalities, and other motor pools and fleets; general liability; and inland marine insurance products. It also provides surety bond coverage for subdivision construction; school bus contracts; and performance and payment bonds. In addition, the company offers individual and group whole life insurance products; Medicare supplement insurance products; and other accident and health insurance products comprising various individual and group policies for the payment of standard benefits for the treatment of diagnosed cancer and other critical illnesses, as well as various other products, such as short-term nursing facility care, accident only, hospital indemnity, and disability coverages. It markets its products through independent agents and brokers. The company was founded in 1937 and is based in Atlanta, Georgia. Atlantic American Corporation is a subsidiary of Atlantic American / Delta Group.
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