Root (NASDAQ:ROOT – Get Rating) is one of 95 publicly-traded companies in the “Fire, marine, & casualty insurance” industry, but how does it weigh in compared to its peers? We will compare Root to similar businesses based on the strength of its profitability, valuation, risk, earnings, institutional ownership, analyst recommendations and dividends.
Insider & Institutional 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. 27.6% of Root shares are owned by company insiders. Comparatively, 13.5% of shares of all “Fire, marine, & casualty insurance” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Analyst Recommendations
This is a breakdown of current ratings for Root and its peers, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Root | 1 | 7 | 2 | 0 | 2.10 |
| Root Competitors | 407 | 2430 | 2436 | 91 | 2.41 |
Root currently has a consensus price target of $4.88, suggesting a potential upside of 373.98%. As a group, “Fire, marine, & casualty insurance” companies have a potential upside of 24.12%. Given Root’s higher probable upside, analysts plainly believe Root is more favorable than its peers.
Volatility & Risk
Root has a beta of -0.22, indicating that its share price is 122% less volatile than the S&P 500. Comparatively, Root’s peers have a beta of 0.75, indicating that their average share price is 25% less volatile than the S&P 500.
Profitability
This table compares Root and its peers’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Root | -137.46% | -82.88% | -33.22% |
| Root Competitors | -2.57% | 2.01% | 0.37% |
Valuation and Earnings
This table compares Root and its peers gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Net Income | Price/Earnings Ratio | |
| Root | $345.40 million | -$521.10 million | -0.52 |
| Root Competitors | $13.19 billion | $2.84 billion | 70.55 |
Root’s peers have higher revenue and earnings than Root. Root is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.
Summary
Root peers beat Root on 11 of the 13 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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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.