LMND vs ROOT vs HIPO

For growth investors, Lemonade, Inc.

(LMND) is the stronger pick with 40. 2% revenue growth year-over-year, versus 25. 9% for Hippo Holdings Inc. (HIPO). Hippo Holdings Inc. (HIPO) offers the better valuation at 12. 3x trailing P/E (114. 1x forward), making it the more compelling value choice. Analysts rate Lemonade, Inc. (LMND) a "Buy" — based on 15 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, Hippo Holdings Inc.

(HIPO) is the cheapest at 12. 3x versus Root, Inc. at 24. 6x. On forward P/E, Root, Inc. is actually cheaper at 28. 1x — notably different from the trailing picture, reflecting expected earnings growth.

Over the past 5 years, Lemonade, Inc.

(LMND) delivered a total return of -30. 4%, compared to -88. 9% for Hippo Holdings Inc. (HIPO). Over 10 years, the gap is even starker: LMND returned -23. 6% versus HIPO's -90. 5%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Hippo Holdings Inc.

(HIPO) is the lower-risk stock at 1. 40β versus Lemonade, Inc. 's 2. 75β — meaning LMND is approximately 97% more volatile than HIPO relative to the S&P 500. On balance sheet safety, Hippo Holdings Inc. (HIPO) carries a lower debt/equity ratio of 12% versus 51% for Root, Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Lemonade, Inc.

(LMND) is pulling ahead at 40. 2% versus 25. 9% for Hippo Holdings Inc. (HIPO). On earnings-per-share growth, the picture is similar: Hippo Holdings Inc. grew EPS 235. 4% year-over-year, compared to 19. 3% for Lemonade, Inc.. Over a 3-year CAGR, ROOT leads at 69. 6% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Hippo Holdings Inc.

(HIPO) is the more profitable company, earning 12. 3% net margin versus -22. 4% for Lemonade, Inc. — meaning it keeps 12. 3% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: HIPO leads at 13. 5% versus -21. 8% for LMND. At the gross margin level — before operating expenses — HIPO leads at 50. 9%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

On forward earnings alone, Root, Inc.

(ROOT) trades at 28. 1x forward P/E versus 114. 1x for Hippo Holdings Inc. — 86. 0x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for LMND: 37. 1% to $72. 67.

None of the stocks in this comparison currently pay a material dividend.

All are effectively zero-yield and should be held for capital appreciation rather than income.

For long-horizon retirement investors, Hippo Holdings Inc.

(HIPO) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding. Root, Inc. (ROOT) carries a higher beta of 2. 30 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (HIPO: -90. 5%, ROOT: -88. 7%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Financial Services sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.