Waterdrop (WDH) Competitors

Waterdrop (NYSE:WDH) and Root (NASDAQ:ROOT) are both small-cap finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, risk, earnings, analyst recommendations, valuation, dividends, media sentiment and institutional ownership.

Does the media prefer WDH or ROOT?

In the previous week, Root had 1 more articles in the media than Waterdrop. MarketBeat recorded 3 mentions for Root and 2 mentions for Waterdrop. Root's average media sentiment score of 1.28 beat Waterdrop's score of 0.04 indicating that Root is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Waterdrop	0 Very Positive mention(s)	0 Positive mention(s)	1 Neutral mention(s)	1 Negative mention(s)	0 Very Negative mention(s)	Neutral
Root	1 Very Positive mention(s)	0 Positive mention(s)	1 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

Which has more volatility and risk, WDH or ROOT?

Waterdrop has a beta of -0.3, meaning that its stock price is 130% less volatile than the S&P 500. Comparatively, Root has a beta of 2.26, meaning that its stock price is 126% more volatile than the S&P 500.

Do institutionals & insiders hold more shares of WDH or ROOT?

2.0% of Waterdrop shares are held by institutional investors. Comparatively, 59.8% of Root shares are held by institutional investors. 24.6% of Waterdrop shares are held by company insiders. Comparatively, 11.8% 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 will outperform the market over the long term.

Which has higher valuation & earnings, WDH or ROOT?

Waterdrop has higher revenue and earnings than Root. Waterdrop is trading at a lower price-to-earnings ratio than Root, indicating that it is currently the more affordable of the two stocks.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Waterdrop	$2.82B	0.26	$50.35M	$0.15	13.63
Root	$1.27B	1.49	$30.90M	$3.20	38.63

Do analysts recommend WDH or ROOT?

Root has a consensus target price of $130.50, indicating a potential upside of 5.58%. Given Root's stronger consensus rating and higher possible upside, analysts clearly believe Root is more favorable than Waterdrop.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Waterdrop	0 Sell rating(s)	0 Hold rating(s)	0 Buy rating(s)	0 Strong Buy rating(s)	0.00
Root	0 Sell rating(s)	6 Hold rating(s)	2 Buy rating(s)	1 Strong Buy rating(s)	2.44

Is WDH or ROOT more profitable?

Waterdrop has a net margin of 13.78% compared to Root's net margin of 4.11%. Root's return on equity of 27.33% beat Waterdrop's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Waterdrop	13.78%	8.21%	6.16%
Root	4.11%	27.33%	3.41%

Summary

Root beats Waterdrop on 12 of the 17 factors compared between the two stocks.