Which is a Better Buy Right Now -- Hippo or Lemonade?
It's been tough sledding lately for Hippo Holdings (NYSE: HIPO) and Lemonade, Inc. (NYSE: LMND). Sentiment on the previously hot 'insuretech' space has cooled considerably, punctuated by the broader sell-off of tech names trading at high multiples over the last few weeks. Both stocks have retreated more than 75% from their all-time highs. Lemonade was one of the hottest IPOs of 2020 while Hippo went public via SPAC in 2021 and then tanked afterwards. Both companies talk about using AI to improve underwriting and the customer experience. Both have shown impressive revenue growth but neither is profitable yet. With a lot of the air out of the market, which stock is the better buying opportunity right now?
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Hippo uses technology to improve the home insurance experience and deliver "intuitive and proactive protection for homeowners." Hippo's key differentiator is its mission to transform the adversarial relationship between customer and insurance provider into more of a symbiotic partnership. For example, Hippo sends policy holders home monitoring kits that monitor for fire and water damage among other risks. Hippo also engages in "continuous underwriting", using things like permit data and property inspections to update customer policies to increase their coverage if they install a new pool, or to give them a discount if they put in a new roof.
Source Fool.com
