Analyzing Root (ROOT) and Its Rivals

Root (NASDAQ:ROOTGet Rating) is one of 95 public companies in the “Fire, marine, & casualty insurance” industry, but how does it contrast to its competitors? We will compare Root to similar businesses based on the strength of its valuation, dividends, profitability, earnings, analyst recommendations, risk and institutional ownership.

Earnings & Valuation

This table compares Root and its competitors top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Root $345.40 million -$521.10 million -0.59
Root Competitors $13.19 billion $2.84 billion 69.97

Root’s competitors have higher revenue and earnings than Root. Root is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Root and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Root -137.46% -99.07% -34.55%
Root Competitors -2.45% 1.92% 0.38%

Institutional and Insider Ownership

52.0% of Root shares are owned by institutional investors. Comparatively, 59.2% of shares of all “Fire, marine, & casualty insurance” companies are owned by institutional investors. 54.4% of Root shares are owned by insiders. Comparatively, 13.8% of shares of all “Fire, marine, & casualty insurance” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings for Root and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Root 1 7 2 0 2.10
Root Competitors 397 2391 2423 87 2.42

Root presently has a consensus target price of $5.31, suggesting a potential upside of 349.75%. As a group, “Fire, marine, & casualty insurance” companies have a potential upside of 23.24%. Given Root’s higher possible upside, equities research analysts plainly believe Root is more favorable than its competitors.

Risk & Volatility

Root has a beta of -0.32, indicating that its stock price is 132% less volatile than the S&P 500. Comparatively, Root’s competitors have a beta of 0.75, indicating that their average stock price is 25% less volatile than the S&P 500.

Summary

Root competitors beat Root on 10 of the 12 factors compared.

Root Company Profile (Get Rating)

Root, Inc. provides insurance products and services in the United States. The company offers automobile, homeowners, and renters insurance products. The company operates a direct-to-consumer model and serves customers primarily through mobile applications, as well as through its website. Its direct distribution channels also cover digital, media, and referral channels, as well as distribution partners and agencies. The company was incorporated in 2015 and is headquartered in Columbus, Ohio.

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