Assurant vs Lemonade Which Is More Promising?

Assurant and Lemonade are two prominent insurance companies operating in the market today. Assurant, founded in 1892, offers a wide range of insurance products and services, including property, health, and casualty insurance. Lemonade, on the other hand, is a newer player in the industry, disrupting the traditional model with its innovative technology-driven approach to insurance. Both companies have experienced growth in recent years, but their stocks have performed differently in the market. This comparison will analyze the key factors contributing to the success and performance of Assurant and Lemonade stocks.

Assurant or Lemonade?

When comparing Assurant and Lemonade, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Assurant and Lemonade.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Assurant has a dividend yield of 0.96%, while Lemonade has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Assurant reports a 5-year dividend growth of 4.34% year and a payout ratio of 20.68%. On the other hand, Lemonade reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Assurant P/E ratio at 15.79 and Lemonade's P/E ratio at -15.59. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Assurant P/B ratio is 2.23 while Lemonade's P/B ratio is 5.64.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Assurant has seen a 5-year revenue growth of 0.54%, while Lemonade's is 10.96%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Assurant's ROE at 14.84% and Lemonade's ROE at -32.84%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $223.32 for Assurant and $46.28 for Lemonade. Over the past year, Assurant's prices ranged from $160.12 to $230.55, with a yearly change of 43.99%. Lemonade's prices fluctuated between $14.03 and $53.85, with a yearly change of 283.82%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.