Critical Analysis: Lemonade (NYSE:LMND) vs. World Access (OTCMKTS:WAXS)

Lemonade (NYSE:LMND) and World Access (OTCMKTS:WAXS) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their analyst recommendations, valuation, earnings, profitability, institutional ownership, risk and dividends.

Institutional & Insider Ownership

80.3% of Lemonade shares are owned by institutional investors. 12.2% of Lemonade shares are owned by insiders. Comparatively, 16.4% of World Access shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Lemonade and World Access”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lemonade	$844.70 million	6.00	-$165.50 million	($1.87)	-35.26
World Access	N/A	N/A	N/A	N/A	N/A

World Access has lower revenue, but higher earnings than Lemonade.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Lemonade and World Access, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lemonade	3	3	4	0	2.10
World Access	0	0	0	0	0.00

Lemonade presently has a consensus target price of $66.78, suggesting a potential upside of 1.29%. Given Lemonade’s stronger consensus rating and higher possible upside, analysts plainly believe Lemonade is more favorable than World Access.

Profitability

This table compares Lemonade and World Access’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lemonade	-16.44%	-26.52%	-7.18%
World Access	N/A	N/A	N/A

Summary

Lemonade beats World Access on 5 of the 9 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 World Access

World Access, Inc. operates as a global services company providing solutions in customer care to organizations in the travel, financial, health care, and call center industries. It consists of three full service companies and three specialized services companies. World Access Service Corporation serves companies located in the US and companies that have travelers or employees visiting North America. World Access Canada serves companies located in Canada; and World Access Asia serves companies located in eastern Asia, including Japan. World Access Europe provides members of World Access with logistical and medical support throughout the region. Other companies include World Access Provider Network Services; and World Access Transport Services that manages and coordinates all medical evacuation and repatriation activities for World Access. The company is based in Atlanta, Georgia. In April 2001, the company filed voluntary petitions for Chapter 11 relief in the United States Bankruptcy Court on behalf of itself and certain of its U.S. subsidiaries.