Kingsway Financial Services (NYSE:KFS) versus Lemonade (NYSE:LMND) Financial Survey

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

Institutional & Insider Ownership

80.3% of Lemonade shares are held by institutional investors. Comparatively, 72.4% of Kingsway Financial Services shares are held by institutional investors. 12.5% of Lemonade shares are held by insiders. Comparatively, 54.8% of Kingsway Financial Services shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Volatility and Risk

Lemonade has a beta of 1.68, indicating that its share price is 68% more volatile than the S&P 500. Comparatively, Kingsway Financial Services has a beta of -0.08, indicating that its share price is 108% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations for Lemonade and Kingsway Financial Services, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lemonade	3	3	1	0	1.71
Kingsway Financial Services	0	0	0	0	0.00

Lemonade currently has a consensus price target of $23.33, indicating a potential downside of 31.99%. Given Lemonade’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Lemonade is more favorable than Kingsway Financial Services.

Valuation & Earnings

This table compares Lemonade and Kingsway Financial Services”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lemonade	$429.80 million	5.70	-$236.90 million	($3.04)	-11.29
Kingsway Financial Services	$103.24 million	2.36	$23.56 million	N/A	N/A

Kingsway Financial Services has lower revenue, but higher earnings than Lemonade.

Profitability

This table compares Lemonade and Kingsway Financial Services’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lemonade	-43.51%	-32.85%	-12.59%
Kingsway Financial Services	-3.63%	-7.83%	-0.74%

Summary

Lemonade beats Kingsway Financial Services on 7 of the 12 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 Kingsway Financial Services

Kingsway Financial Services Inc., through its subsidiaries, engages in the extended warranty and business services in the United States. The company operates through two segments, Extended Warranty and Kingsway Search Xcelerator. The Extended Warranty segment markets, sells, and administers vehicle service agreements and related products for new and used automobiles, motorcycles, and ATVs. This segment also markets and distributes warranty products to manufacturers, distributors, and installers of heating, ventilation and air conditioning, standby generator, commercial LED lighting, and commercial refrigeration equipment; and provides equipment breakdown and maintenance support services to companies, as well as after-market vehicle protection services. The Kingsway Search Xcelerator offers outsourced finance and human resources consulting services, including operational accounting, such as bookkeeping, accounting, financial reporting, and analysis and strategic finance services; technical accounting comprising initial public offerings, Securities and Exchange Commission reporting, and international consolidation services; human resources, workforce management, and compliance support services; and advisory services. This segment also provides financial executive services for project and interim staffing engagements; search services for permanent placements; healthcare staffing services to acute healthcare facilities for short-term and day-to-day needs of hospitals; software products for the management needs of all types of shared-ownership properties; and fully managed outsourced cardiac telemetry services, as well as provides mobile monitors to the hospitals. The company offers its products and services through credit unions and dealers. Kingsway Financial Services Inc. was incorporated in 1989 and is headquartered in Chicago, Illinois.