Lemonade (NYSE:LMND)

When looking at Price-to-Book value today Lemonade is priced similarly to industry leaders. However, they only have car insurance in 2 states thus far. They're acquiring the car insurance pricing leader (Metromile) and their 10+ years worth of data for less than the cash they'll be acquiring in the acquisition. This is a company that is priced as if they will not grow, but is only just beginning.

They are disrupting the insurance industry like how digital fintech companies disrupted the banking industry. The all digital model provides an edge over traditional peers in speed and efficiency. Instant insurance approvals and claims payouts appeal to the new generation of millenials and gen z who value hassle free, ease of use and instant gratification. Their dollar payout ratio is high compared to peers, but aside from a few major events and some algorithm fine-tuning, LMND will stabilize. Lemonade's promise to donate to charity their profits once they meet their payout goals sets a ceiling on profits, but its worth the appeal to customers. The company is rapidly expanding into new markets, offering new products, and acquiring companies like Metromile to meet the growing demand of their customer base.