LMND vs HIPO Stock Comparison: AI Score, Valuation, Performance and Upside
LMND (Lemonade) and HIPO (Hippo) are both digital-first homeowners insurance insurtechs that have struggled with loss ratios significantly above profitability thresholds. Lemonade's AI claims processing across multiple product lines contrasts with Hippo's smart home proactive prevention focus — both have faced the brutal economics of property insurance including catastrophe exposure.
LMND vs HIPO represents the insurtech property insurance challenge — two innovative digital insurers demonstrating that technology alone doesn't solve insurance profitability without achieving pricing accuracy and managing catastrophe exposure.
HIPO holds the edge across 4 of 5 key metrics in this comparison. HIPO leads on both 1-year return (-15.48%) and forward P/E quality (9.67x vs -61.25x for LMND), a relatively favorable combination of momentum and valuation. On fundamentals, LMND is growing revenue faster (79.40%), while HIPO maintains the higher operating margin (8.02%) — a classic growth-versus-profitability split. Analyst consensus implies meaningfully more upside for HIPO (+20.96%) than for LMND (+11.13%).
Human Wall Street analysts' price targets, typically implying a ~12-month view — a separate signal from this site's own AI Prediction Signal further down the page, which is a 5-/30-day machine-learning forecast based on price history alone.
- Want exposure to AI-powered digital insurance with a mission-driven consumer brand across renters, home, pet, and car insurance
- Believe Lemonade's AI underwriting will eventually achieve loss ratios below traditional insurers as it scales
- Value Lemonade's diversified product portfolio as reducing single-catastrophe concentration versus pure homeowners insurtechs
- See smart home technology integration as a genuine innovation in proactive risk prevention that can improve homeowners insurance economics
- Want homeowners insurance-focused insurtech exposure with a digital-first quote and bind experience
- Believe Hippo's reinsurance improvements and geographic diversification will bring loss ratios to profitability faster than skeptics expect
| Metric | LMND | HIPO |
|---|---|---|
| AI scorei | 25.0 | 23.6 |
| AI ranki | #2872 | #3479 |
| Latest closei | $47.13 | $31.56 |
| 1M returni | -11.69% | -4.71% |
| 6M returni | -29.52% | +20.41% |
| 1Y returni | -22.69% | -15.48% |
How much would $10,000 be worth today if invested at the start of each period, with all dividends reinvested?
| Period | LMND | HIPO |
|---|---|---|
| 1Y ago | $7.9K (-21.0%) started 2025-09-22 | $8.64K (-13.6%) started 2025-09-22 |
| 5Y ago | $6.72K (-32.8%) started 2021-09-21 | $2.51K (-74.9%) started 2021-09-21 |
| 10Y ago | $6.79K (-32.1%) started 2020-07-02 | $1.1K (-89.0%) started 2021-01-11 |
Hypothetical — past performance does not guarantee future results.
| Metric | LMND | HIPO |
|---|---|---|
| Market capi | $4.12B | $897.24M |
| Trailing P/Ei | N/A | 7.22 |
| Forward P/Ei | -61.25 | 9.67 |
| Price/Salesi | N/A | N/A |
| EV/Revenuei | 3.92 | 1.21 |
| Analyst targeti | $59.22 | $41.13 |
| Target upsidei | +11.13% | +20.96% |
| Metric | LMND | HIPO |
|---|---|---|
| Revenue growthi | 79.40% | 23.40% |
| Earnings growthi | N/A | 660.00% |
| EPS growthi | N/A | +660.00% |
| FCF margini | +9.68% | +31.21% |
| Operating margini | -11.82% | 8.02% |
| Profit margini | -14.19% | 23.92% |
| ROIC proxyi | -26.96% | 30.34% |
| Return on equityi | -26.96% | 30.34% |
| Dividend yieldi | N/A | N/A |
| Payout ratioi | 0.00% | 0.00% |
| Dividend growth streaki | N/A | N/A |
| Betai | 1.86 | 1.55 |
| Debt/equityi | 45.33 | 10.89 |
| Current ratioi | 1.19 | 1.00 |
| Quick ratioi | 0.91 | 0.47 |
Over the past year, LMND and HIPO have moved moderately in the same direction (correlation of 0.48), based on daily returns.
Lower drawdown and smaller single-period drops generally indicate a smoother ride, though they do not guarantee lower future risk.
| Period | Metric | LMND | HIPO |
|---|---|---|---|
| 1Y | Growthi | -21.03% | -13.63% |
| CAGRi | -21.09% | -13.67% | |
| Volatilityi | 80.48% | 35.85% | |
| Sharpe ratioi | 0.04 | -0.36 | |
| Sortino ratioi | 0.07 | -0.51 | |
| Max drawdowni | 51.24% | 36.35% | |
| Current drawdowni | 51.20% | 16.62% | |
| Avg drawdowni | 27.50% | 20.07% | |
| Ulcer Indexi | 32.28% | 22.23% | |
| Max daily dropi | 23.72% | 8.59% | |
| Max wkly dropi | 25.29% | 11.20% | |
| 5Y | Growthi | -32.82% | -74.85% |
| CAGRi | -7.65% | -24.13% | |
| Volatilityi | 82.85% | 67.82% | |
| Sharpe ratioi | 0.25 | -0.15 | |
| Sortino ratioi | 0.40 | -0.23 | |
| Max drawdowni | 85.33% | 94.50% | |
| Current drawdowni | 51.20% | 74.85% | |
| Avg drawdowni | 57.18% | 77.56% | |
| Ulcer Indexi | 61.61% | 79.20% | |
| Max daily dropi | 27.72% | 15.90% | |
| Max wkly dropi | 31.37% | 36.97% | |
| 10Y | Growthi | -32.10% | -89.02% |
| CAGRi | -6.03% | -32.17% | |
| Volatilityi | 84.53% | 67.68% | |
| Sharpe ratioi | 0.29 | -0.31 | |
| Sortino ratioi | 0.45 | -0.47 | |
| Max drawdowni | 94.23% | 98.06% | |
| Current drawdowni | 74.28% | 91.13% | |
| Avg drawdowni | 72.84% | 84.55% | |
| Ulcer Indexi | 76.13% | 87.32% | |
| Max daily dropi | 27.72% | 16.96% | |
| Max wkly dropi | 34.49% | 36.97% |
| Category | LMND | HIPO |
|---|---|---|
| Company | Lemonade, Inc. | Hippo Holdings Inc. |
| Sector | Financial Services | Financial Services |
| Industry | Insurance - Property & Casualty | Insurance - Property & Casualty |
| Core business | Lemonade is a digital insurance company using AI to provide renters, homeowners, pet, term life, and car insurance, with AI bots handling policy binding and claims in seconds, operating with a flat fee model and donating unclaimed premiums to charity (Giveback program). | Hippo offers smart home insurance using proactive technology (smart home sensors, connected home data) to prevent claims before they happen, targeting homeowners with data-driven, fast-quote homeowners insurance available in most U.S. states. |
| Investor focus | Investors track Lemonade's in-force premium (IFP) growth, gross loss ratio improvement toward profitability, customer count expansion, and whether the AI and machine learning underwriting model can achieve better loss ratios than traditional insurers over time. | Investors track Hippo's total generated premium, loss ratio improvement, reinsurance strategy, and the company's path to profitability as it manages catastrophe exposure and builds a larger premium base. |
- AI-first claims processing provides instant settlement for many claims and reduces fraud through behavioral analysis — genuine technological differentiation
- Giveback program donates surplus premiums to charity, creating a mission-driven consumer brand that resonates with socially-conscious policyholders
- Digital-first model with no agent network has structurally lower acquisition costs than traditional insurance, though loss ratios must improve to realize this advantage
- Smart home technology approach to risk prevention — detecting water leaks, fire risks, and other hazards before they become claims — is a genuinely differentiated risk management approach
- Fast digital quote-and-bind experience targets homeowners frustrated with traditional agent-dependent insurance purchasing
- Comprehensive homeowners insurance product with smart home device integration provides unique bundled value proposition
- Loss ratios have been significantly above breakeven — Lemonade has struggled to price risk accurately across its expanding product lines
- Homeowners insurance is capital-intensive and exposed to catastrophe losses (hurricanes, wildfires) that can quickly impair the balance sheet
- Scaling from simple renters and pet insurance to complex homeowners and car insurance has increased Lemonade's risk exposure significantly
- Catastrophe weather losses (hurricanes, hailstorms) have severely impacted Hippo's loss ratios in its concentrated geographic markets
- Hippo's reinsurance structure and catastrophe exposure management are critical financial risks given homeowners insurance's weather sensitivity
- Like Lemonade, Hippo has struggled with loss ratios significantly above breakeven — path to profitability requires substantial underwriting improvement
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