ROOT vs. AMSF, EIG, HCI, LMND, PRA, SAFT, TIPT, UVE, UFCS, and HIPO
Should you be buying Root stock or one of its competitors? The main competitors of Root include AMERISAFE (AMSF), Employers (EIG), HCI Group (HCI), Lemonade (LMND), ProAssurance (PRA), Safety Insurance Group (SAFT), Tiptree (TIPT), Universal Insurance (UVE), United Fire Group (UFCS), and Hippo (HIPO). These companies are all part of the "fire, marine, & casualty insurance" industry.
Root (NASDAQ:ROOT) and AMERISAFE (NASDAQ:AMSF) are both small-cap finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, community ranking, valuation, risk, profitability, institutional ownership, media sentiment, earnings and dividends.
59.8% of Root shares are held by institutional investors. Comparatively, 97.4% of AMERISAFE shares are held by institutional investors. 10.3% of Root shares are held by insiders. Comparatively, 1.6% of AMERISAFE shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
AMERISAFE has lower revenue, but higher earnings than Root. Root is trading at a lower price-to-earnings ratio than AMERISAFE, indicating that it is currently the more affordable of the two stocks.
Root currently has a consensus target price of $21.88, indicating a potential downside of 62.99%. AMERISAFE has a consensus target price of $65.00, indicating a potential upside of 27.68%. Given AMERISAFE's stronger consensus rating and higher possible upside, analysts clearly believe AMERISAFE is more favorable than Root.
AMERISAFE has a net margin of 20.24% compared to Root's net margin of -32.40%. AMERISAFE's return on equity of 17.19% beat Root's return on equity.
Root has a beta of 2.86, suggesting that its share price is 186% more volatile than the S&P 500. Comparatively, AMERISAFE has a beta of 0.32, suggesting that its share price is 68% less volatile than the S&P 500.
AMERISAFE received 204 more outperform votes than Root when rated by MarketBeat users. Likewise, 57.58% of users gave AMERISAFE an outperform vote while only 24.39% of users gave Root an outperform vote.
In the previous week, Root had 1 more articles in the media than AMERISAFE. MarketBeat recorded 4 mentions for Root and 3 mentions for AMERISAFE. AMERISAFE's average media sentiment score of 0.80 beat Root's score of 0.25 indicating that AMERISAFE is being referred to more favorably in the news media.
Summary
AMERISAFE beats Root on 13 of the 18 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding ROOT and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NASDAQ and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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