HIPPO vs LEMONADE | Which is the better long term investment?

In this video, I take a look at Hippo insurance and compare them to Lemonade (LMND). Which is the better long term investment? What makes Hippo special or unique in their approach?

Link to Lemonade playlist:

TIMESTAMPS:
0:00 Intro
1:05 Hippo vs Lemonade outline
1:30 Lemonade summarized
2:04 Hippo IPO plans & background
3:51 Hippo investor presentation
15:15 Hippo investor presentation - flywheel
18:40 Hippo investor presentation continued
22:24 Obvious differences
24:38 Less obvious differences
25:15 Website experience comparison
32:10 Clearsurance customer review comparison
33:40 Less obvious differences continued
34:46 Key questions
36:36 Outro

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[niking]

Thanks a lot!! Great in depth analysis, getting more and more confident about investing in lemonade!

[na-cpkp]

Learned a lot from this video. Hope to see more content like this!

[ShaulGoral]

I think what we see here is the difference between 85% and 95%.
Fairly easy to do 85%. Very rare to do +95%.
Lemonade seems to be doing everything right. It all adds up logically into the big picture of delight and being a benifit to society.
Where hippo is the more naive solution of taking insurance into the tech age.

[ferhatti]

why did you not compare the stock price value, earnings, growth etc? that's most important aspect of the video

[siliconvalleyinvestor]

Their valuations are a bit high, but long-term I can see both outgrowing the current top companies, so I'm holding a little of both and will buy more if they drop significantly. Short term they'll probably both fluctuate, but the risk-reward is good if you're willing to give it a decade. We know Home insurance will still exist in a decade and be bigger than today, unlike many leading industries that could die out by then, and I hope the leading companies by 2030 would be modern and not running on mainframes from the 60's

Financially, I think Hippo has better prospects because they can actually make money off Risk (they do have their own carrier and do their own underwriting), while Lemonade's approach to a non-profit carrier significantly lowers their potential earnings. One could argue that Lemonade's approach makes it more appealing to consumers, but Hippo's numbers are better (higher revenue, lower loss ratio, I think also higher growth rate), so it's not proving itself yet

[larryiraweinman]

Dig deeper Hippo is way different more products, partners in mortgage, alarms and builders. Copying the tech advantage is difficult check the partners which invested vc Ally, Lennar, mitsui, xfinity. Furthermore lmnd is stuck in mostly low premium low profit products: renters and pet and low premium homeowners. Their avg premium is $250 hippo is $1200. And homeowners is a MUST BUY product you cant get a loan without it. The fact that major insurers and builders invest at vc state and partner up indicates they have unique tech.

[sergicorcoy]

Are you feeling less bullish on lemonade after the recent earnings and cfo/ceo interviews?
It definitely seems overvalued looking into the numbers and forecast

[ab]

What is your opinion—not recommendation? It would be nice to know!

[larryiraweinman]

No you tuber seems to understand hippo and lemonade are TOTALLY different businesses.!!