Hamilton Insurance Group (NYSE:HG – Get Free Report) and Root (NASDAQ:ROOT – Get Free Report) are both finance companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, profitability, valuation, analyst recommendations, dividends, earnings and risk.
Analyst Ratings
This is a breakdown of recent ratings and recommmendations for Hamilton Insurance Group and Root, as reported by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Hamilton Insurance Group | 0 | 1 | 4 | 0 | 2.80 |
Root | 0 | 6 | 2 | 1 | 2.44 |
Hamilton Insurance Group presently has a consensus price target of $23.60, suggesting a potential upside of 25.27%. Root has a consensus price target of $112.67, suggesting a potential downside of 21.26%. Given Hamilton Insurance Group’s stronger consensus rating and higher possible upside, equities analysts clearly believe Hamilton Insurance Group is more favorable than Root.
Profitability
This table compares Hamilton Insurance Group and Root’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Hamilton Insurance Group | 21.88% | 21.92% | 6.70% |
Root | -1.56% | -9.81% | -1.12% |
Earnings & Valuation
This table compares Hamilton Insurance Group and Root”s top-line revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Hamilton Insurance Group | $2.38 billion | 0.80 | $258.73 million | $3.64 | 5.18 |
Root | $1.18 billion | 1.85 | -$147.40 million | $1.71 | 83.68 |
Hamilton Insurance Group has higher revenue and earnings than Root. Hamilton Insurance Group is trading at a lower price-to-earnings ratio than Root, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
29.2% of Hamilton Insurance Group shares are held by institutional investors. Comparatively, 59.8% of Root shares are held by institutional investors. 17.5% of Hamilton Insurance Group shares are held by company insiders. Comparatively, 11.7% of Root shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Volatility & Risk
Hamilton Insurance Group has a beta of 0.47, suggesting that its share price is 53% less volatile than the S&P 500. Comparatively, Root has a beta of 2.41, suggesting that its share price is 141% more volatile than the S&P 500.
Summary
Hamilton Insurance Group beats Root on 11 of the 15 factors compared between the two stocks.
About Hamilton Insurance Group
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Alice J. Roden started working for Trending Insurance News at the end of 2021. Alice grew up in Salt Lake City, UT. A writer with a vast insurance industry background Alice has help with several of the biggest insurance companies. Before joining Trending Insurance News, Alice briefly worked as a freelance journalist for several radio stations. She covers home, renters and other property insurance stories.