LIVE
ROOT
Root, Inc. · Financials
$55.59
+1.33% this month
VERSUS
⟷
COMPARE
LMND
Lemonade, Inc. · Financials
$66.02
+8.67% this month
Scoreboard verdict
Across AI score, momentum, valuation, upside, operating margin
ROOT
2
LMND
2
Comparison scoreboard
MIXED SETUPAI Score
ROOT 22.8
LMND ✓34.1
1Y Return
ROOT -53.84%
LMND ✓+69.67%
Fwd P/E
ROOT ✓18.17
LMND -78.61
Target Up.
ROOT ✓+23.76%
LMND -4.93%
Op. Margin
ROOT N/A
LMND N/A
Metrics last refreshed: 7/15/2026
Quick take
ROOT vs LMND: Root Insurance vs Lemonade Stock Comparison: AI Score, Valuation, Performance and Upside
Root Insurance uses telematics data to price auto insurance risk more accurately for good drivers, while Lemonade is an AI-powered multi-line digital insurer with a brand-differentiated charity giveback model. Both are insurtech challengers with improving but still elevated loss ratios, competing against much better-capitalized incumbents.
ROOT vs LMND is telematics-driven auto insurance underwriting accuracy versus AI-powered multi-line digital insurance with brand differentiation — Root wins if telematics pricing creates sustained underwriting profitability; Lemonade wins if multi-line cross-selling and AI claims processing drive eventual underwriting improvement.
Live analysis · updated 7/15/2026
ROOT and LMND are closely matched — they split the tracked metrics evenly. LMND has delivered stronger 1-year price return (+69.67% vs -53.84%), though ROOT has the better forward P/E setup (18.17x vs -78.61x for LMND). Analyst consensus implies meaningfully more upside for ROOT (+23.76%) than for LMND (-4.93%).
Normalized 1Y performance
ROOT
LMND
Recent returns
ROOT
LMND
Analyst price targets & sentiment
ROOT · 5 analysts
STRONG BUYHOLDSTRONG SELL
Buy (2.5/5.0)
Price target range
analyst low$50.00
analyst high$95.00
analyst mean$68.80
current price$55.59
+23.8% upside to analyst mean
LMND · 9 analysts
STRONG BUYHOLDSTRONG SELL
Hold (3.0/5.0)
Price target range
analyst low$40.00
analyst high$92.00
analyst mean$62.78
current price$66.02
-4.9% upside to analyst mean
Who should consider this stock?
ROOT may suit investors who:
- →believe telematics-driven underwriting will produce structurally better auto loss ratios than incumbents
- →want focused auto insurance exposure with a clear differentiated data advantage
- →prefer Root's simpler single-line insurance model vs Lemonade's complex multi-line expansion
- →are comfortable with the capital-intensive competitive dynamics of auto insurance vs incumbents
LMND may suit investors who:
- →prefer Lemonade's multi-line digital platform with cross-sell potential across renters, home, auto, and life
- →value Lemonade's brand-differentiated giveback model as a customer loyalty advantage
- →believe AI claims processing will eventually drive meaningful cost structure improvement
- →are comfortable with elevated loss ratios and cash burn during Lemonade's growth phase
Performance & AI score
| Metric | ROOT | LMND |
|---|---|---|
| AI score | 22.8 | 34.1 |
| AI rank | #3911 | #1848 |
| Latest close | $55.59 | $66.02 |
| 1M return | +1.33% | +8.67% |
| 6M return | -25.14% | -18.91% |
| 1Y return | -53.84% | +69.67% |
$10,000 invested — hypothetical growth (dividends reinvested)
How much would $10,000 be worth today if invested at the start of each period, with all dividends reinvested?
| Period | ROOT | LMND |
|---|---|---|
| 1Y ago | $4.62K (-53.8%) started 2025-07-15 | $16.97K (+69.7%) started 2025-07-15 |
| 5Y ago | $3.72K (-62.8%) started 2021-07-15 | $7.6K (-24.0%) started 2021-07-15 |
| 10Y ago | $1.14K (-88.6%) started 2020-10-28 | $9.51K (-4.9%) started 2020-07-02 |
Hypothetical — past performance does not guarantee future results.
Valuation & upside potential
| Metric | ROOT | LMND |
|---|---|---|
| Market cap | $879.78M | $5.07B |
| Trailing P/E | 16.45 | N/A |
| Forward P/E | 18.17 | -78.61 |
| Price/Sales | 0.56 | 6.01 |
| EV/Revenue | 0.44 | 6.15 |
| Analyst target | $68.80 | $62.78 |
| Target upside | +23.76% | -4.93% |
Growth, profitability & risk
| Metric | ROOT | LMND |
|---|---|---|
| Revenue growth | 12.60% | 70.60% |
| Earnings growth | 95.30% | N/A |
| EPS growth | +95.30% | N/A |
| FCF margin | +11.44% | +10.76% |
| Operating margin | N/A | N/A |
| Profit margin | 3.52% | -16.44% |
| ROIC proxy | 14.85% | -26.12% |
| Return on equity | 14.85% | -26.12% |
| Dividend yield | 0.00% | 0.00% |
| Beta | 2.85 | 1.78 |
| Debt/equity | 45.74 | 38.69 |
| Current ratio | 1.98 | 1.24 |
| Quick ratio | 1.74 | 0.93 |
Drawdown & downside risk
Lower drawdown and smaller single-period drops generally indicate a smoother ride, though they do not guarantee lower future risk.
1Y risk snapshot
ROOT max drawdown67.10%
LMND max drawdown47.70%
ROOT max wkly drop28.28%
LMND max wkly drop25.00%
5Y risk snapshot
ROOT max drawdown97.69%
LMND max drawdown88.54%
ROOT max wkly drop36.32%
LMND max wkly drop31.37%
10Y risk snapshot
ROOT max drawdown99.29%
LMND max drawdown94.23%
ROOT max wkly drop36.32%
LMND max wkly drop34.49%
Performance metrics by period
| Period | Metric | ROOT | LMND |
|---|---|---|---|
| 1Y | Growth | -53.84% | +69.67% |
| CAGR | -53.86% | +69.74% | |
| Sharpe ratio | -0.83 | 0.98 | |
| Max drawdown | 67.10% | 47.70% | |
| Max daily drop | 26.37% | 14.85% | |
| Max wkly drop | 28.28% | 25.00% | |
| 5Y | Growth | -62.84% | -24.01% |
| CAGR | -17.96% | -5.34% | |
| Sharpe ratio | 0.23 | 0.28 | |
| Max drawdown | 97.69% | 88.54% | |
| Max daily drop | 26.37% | 27.72% | |
| Max wkly drop | 36.32% | 31.37% | |
| 10Y | Growth | -88.56% | -4.88% |
| CAGR | -31.59% | -0.83% | |
| Sharpe ratio | 0.04 | 0.35 | |
| Max drawdown | 99.29% | 94.23% | |
| Max daily drop | 26.37% | 27.72% | |
| Max wkly drop | 36.32% | 34.49% |
Business comparison
| Category | ROOT | LMND |
|---|---|---|
| Company | Root, Inc. | Lemonade, Inc. |
| Sector | Financials | Financials |
| Industry | N/A | N/A |
| Core business | Telematics-based auto insurance company that uses smartphone driving behavior data to price risk more accurately. Root targets good drivers with competitive pricing by excluding risky drivers entirely, improving the loss ratio mathematically rather than through underwriting intuition. | AI-powered digital insurance company offering renters, homeowners, pet, auto, and life insurance through a mobile-first platform. Lemonade uses an AI bot (Maya) for instant quotes and claims, donating unused premiums to charity through its giveback model. |
| Investor focus | Loss ratio improvement from telematics-driven underwriting, growth in policies in force, customer acquisition cost efficiency, and path to underwriting profitability. | In-force premium growth, loss ratio improvement (particularly in homeowners), customer acquisition efficiency, cross-selling across product lines, and path to profitability. |
ROOT strengths
- →Telematics driving data creates structurally better underwriting accuracy than traditional actuarial tables — good drivers get better prices
- →Digital-first model has lower distribution costs than agent-based auto insurers
- →Loss ratio improvement has been the primary focus and has shown meaningful progress
LMND strengths
- →Brand-differentiated 'giveback' model creates emotional loyalty among younger customers
- →Multi-line insurance platform allows cross-selling from renters to homeowners and auto as customers' lives evolve
- →AI claims processing creates faster settlement for straightforward claims and lower administrative cost
Risks to watch — ROOT
- →Auto insurance is a highly competitive, capital-intensive business with strong incumbents (Progressive, Geico)
- →CAC (customer acquisition cost) in auto insurance is high — telematics screening adds friction to the acquisition funnel
- →Reinsurance costs and catastrophe exposure add earnings volatility
Risks to watch — LMND
- →Lemonade's loss ratios have been persistently high, particularly in homeowners insurance and auto
- →Catastrophe exposure (hurricanes, wildfires) creates lumpiness in homeowners loss experience
- →Lemonade has grown rapidly but remains far from underwriting profitability — cash burn has been significant
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