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LMND vs ROOT
Which Stock Would AI Choose? Lemonade (LMND) vs. Root (ROOT) Stock Comparison
Key Takeaways
- Both LMND and ROOT are insurtech disruptors leveraging AI and data analytics, but ROOT has achieved profitability while LMND remains unprofitable.
- ROOT shows stronger year-to-date performance at +22.93% compared to LMND's +3.53%.
- ROOT trades at a lower market cap of $866 million versus LMND's $5.245 billion, despite higher trailing twelve-month revenue of $1.52 billion.
- Recent momentum favors ROOT with gains from Carvana partnership milestones, while LMND exhibits volatility post-earnings.
- Both stocks display high volatility with betas above 2.0, reflecting sector risks in insurtech.
Introduction
Lemonade (LMND) and Root (ROOT) represent leading insurtech firms disrupting traditional insurance through AI, machine learning, and data-driven underwriting. This comparison is particularly relevant for growth-oriented investors and traders seeking exposure to fintech innovation in property and casualty insurance. Amid recent market volatility and sector tailwinds like partnerships and improving loss ratios, evaluating their business models, performance, and momentum helps assess relative positioning in a competitive landscape. Traders may find opportunities in their high-beta profiles, while long-term investors weigh profitability paths and growth scalability.
LMND Overview and Recent Performance
Lemonade, Inc. (LMND) offers AI-powered insurance products including renters, homeowners, auto, pet, and life coverage across the U.S., Europe, and U.K. The company emphasizes rapid claims processing and behavioral pricing via its digital platform. In recent market activity, LMND shares have been volatile, with significant swings following fourth-quarter 2025 results that showed record revenue growth of 53% year-over-year and an improved gross loss ratio of 52%, yet ongoing EBITDA losses tempered enthusiasm. Year-to-date gains stand at 3.53%, supported by broader insurtech sentiment and expansions like renters reach and AI auto integrations, though high valuation and unprofitability (EPS TTM -2.24) contribute to choppy momentum.
ROOT Overview and Recent Performance
Root, Inc. (ROOT) specializes in auto and renters insurance, using telematics and mobile apps for personalized pricing based on driving behavior. Operating primarily in the U.S., it focuses on direct-to-consumer and partnership channels. Recent weeks have seen ROOT benefit from strong fourth-quarter 2025 results, including 29% revenue growth to $1.5 billion in premiums and full-year net income of $40 million, marking a shift to profitability (EPS TTM 2.36). Shares gained from milestones in its exclusive Carvana partnership, surpassing 200,000 policies, driving an 11.9% single-session surge amid positive sector dynamics. Year-to-date performance reaches +22.93%, reflecting improved sentiment on execution and cash position.
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Head-to-Head Comparison
LMND pursues a multi-line model across personal insurance categories, fostering diversification but exposing it to varied loss risks, while ROOT concentrates on auto insurance with telematics for precise risk selection. Growth drivers differ: LMND targets 30% in-force premium expansion via AI efficiencies, contrasting ROOT's partnership leverage like Carvana for scale. Recent momentum tilts to ROOT with profitability versus LMND's losses, though both face high betas (2.04 and 2.90). Risk factors include competition and catastrophe exposure; LMND carries premium valuation (P/S 6.88), while ROOT offers value at lower cap despite superior revenue. Market sentiment favors ROOT's catalysts amid insurtech recovery.
Tickeron AI Verdict
Tickeron’s AI currently leans toward ROOT based on trend consistency from profitability, robust year-to-date gains, and tangible catalysts like partnership milestones, positioning it favorably relative to LMND's higher volatility and valuation pressures. This probabilistic edge reflects observable stability and momentum in recent activity, though both warrant monitoring for evolving insurtech dynamics.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer. Disclaimers and Limitations
To compare these two companies we present long-term analysis, their fundamental ratings and make comparative short-term technical analysis which are presented below. The conclusion is LMND is a StrongBuy and ROOT is a StrongBuy.
Long-Term Analysis
It is best to consider a long-term outlook for a ticker by using Fundamental Analysis (FA) ratings. The rating of 1 to 100, where 1 is best and 100 is worst, is divided into thirds. The first third (a green rating of 1-33) indicates that the ticker is undervalued; the second third (a grey number between 34 and 66) means that the ticker is valued fairly; and the last third (red number of 67 to 100) reflects that the ticker is undervalued. We use an FA Score to show how many ratings show the ticker to be undervalued (green) or overvalued (red).
LMND’s FA Score shows that 0 FA rating(s) are green whileROOT’s FA Score has 0 green FA rating(s).
- LMND’s FA Score: 0 green, 5 red.
- ROOT’s FA Score: 0 green, 5 red.
Short-Term Analysis
It is best to consider a short-term outlook for a ticker by using Technical Analysis (TA) indicators. We use Odds of Success as the percentage of outcomes which confirm successful trade signals in the past.
If the Odds of Success (the likelihood of the continuation of a trend) for each indicator are greater than 50%, then the generated signal is confirmed. A green percentage from 90% to 51% indicates that the ticker is in a bullish trend. A red percentage from 90% - 51% indicates that the ticker is in a bearish trend. All grey percentages are below 50% and are considered not to confirm the trend signal.
LMND’s TA Score shows that 3 TA indicator(s) are bullish while ROOT’s TA Score has 3 bullish TA indicator(s).
- LMND’s TA Score: 3 bullish, 4 bearish.
- ROOT’s TA Score: 3 bullish, 6 bearish.
Price Growth
LMND (@Property/Casualty Insurance) experienced а -5.33% price change this week, while ROOT (@Property/Casualty Insurance) price change was -7.02% for the same time period.
The average weekly price growth across all stocks in the @Property/Casualty Insurance industry was +1.83%. For the same industry, the average monthly price growth was +3.58%, and the average quarterly price growth was -1.93%.
Reported Earning Dates
LMND is expected to report earnings on Aug 05, 2026.
ROOT is expected to report earnings on Aug 12, 2026.
Industries' Descriptions
@Property/Casualty Insurance (+1.83% weekly)Property and casualty companies insure against accidents of non-physical harm, such as lawsuits, damage to personal assets, car crashes and more. Progressive Corporation, Travelers Companies, Inc. and Allstate Corporation are some of the biggest providers of such products.
| LMND | ROOT | LMND / ROOT | |
| Capitalization | 4.45B | 807M | 551% |
| EBITDA | N/A | N/A | - |
| Gain YTD | -19.205 | -29.378 | 65% |
| P/E Ratio | N/A | 15.09 | - |
| Revenue | 845M | 1.56B | 54% |
| Total Cash | 578M | 1.06B | 54% |
| Total Debt | 200M | 200M | 100% |
LMND | ||
|---|---|---|
OUTLOOK RATING 1..100 | 20 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 92 Overvalued | |
PROFIT vs RISK RATING 1..100 | 100 | |
SMR RATING 1..100 | 100 | |
PRICE GROWTH RATING 1..100 | 53 | |
P/E GROWTH RATING 1..100 | 100 | |
SEASONALITY SCORE 1..100 | 50 |
Tickeron ratings are formulated such that a rating of 1 designates the most successful stocks in a given industry, while a rating of 100 points to the least successful stocks for that industry.
| LMND | ROOT | |
|---|---|---|
| RSI ODDS (%) | N/A | N/A |
| Stochastic ODDS (%) | 2 days ago 85% | 2 days ago 85% |
| Momentum ODDS (%) | 2 days ago 85% | 2 days ago 90% |
| MACD ODDS (%) | 2 days ago 81% | 2 days ago 90% |
| TrendWeek ODDS (%) | 2 days ago 82% | 2 days ago 89% |
| TrendMonth ODDS (%) | 2 days ago 82% | 2 days ago 89% |
| Advances ODDS (%) | 9 days ago 82% | 12 days ago 85% |
| Declines ODDS (%) | 7 days ago 84% | 21 days ago 90% |
| BollingerBands ODDS (%) | N/A | 2 days ago 88% |
| Aroon ODDS (%) | 2 days ago 89% | 2 days ago 85% |
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| JRE | 27.09 | 0.32 | +1.21% |
| Janus Henderson US Real Estate ETF | |||
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| PFFR | 17.66 | -0.02 | -0.13% |
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| FTRB | 25.12 | -0.05 | -0.18% |
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LMND and
Correlation & Price change
A.I.dvisor indicates that over the last year, LMND has been loosely correlated with HIPO. These tickers have moved in lockstep 53% of the time. This A.I.-generated data suggests there is some statistical probability that if LMND jumps, then HIPO could also see price increases.
| Ticker / NAME | Correlation To LMND | 1D Price Change % | ||
|---|---|---|---|---|
| LMND | 100% | -2.26% | ||
| HIPO - LMND | 53% Loosely correlated | -0.69% | ||
| ROOT - LMND | 51% Loosely correlated | -1.88% | ||
| BNT - LMND | 43% Loosely correlated | -0.92% | ||
| TRUP - LMND | 40% Loosely correlated | -1.23% | ||
| PLMR - LMND | 36% Loosely correlated | +0.13% | ||
More | ||||
ROOT and
Correlation & Price change
A.I.dvisor indicates that over the last year, ROOT has been loosely correlated with LMND. These tickers have moved in lockstep 51% of the time. This A.I.-generated data suggests there is some statistical probability that if ROOT jumps, then LMND could also see price increases.
| Ticker / NAME | Correlation To ROOT | 1D Price Change % | ||
|---|---|---|---|---|
| ROOT | 100% | -1.88% | ||
| LMND - ROOT | 51% Loosely correlated | -2.26% | ||
| HIPO - ROOT | 42% Loosely correlated | -0.69% | ||
| HGTY - ROOT | 38% Loosely correlated | -0.28% | ||
| PRCH - ROOT | 35% Loosely correlated | -1.05% | ||
| MKL - ROOT | 33% Loosely correlated | +0.64% | ||
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