United Fire Group (NASDAQ:UFCS – Get Rating) and Root (NASDAQ:ROOT – Get Rating) are both small-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, risk, valuation, earnings, institutional ownership, analyst recommendations and dividends.
Institutional and Insider Ownership
65.3% of United Fire Group shares are held by institutional investors. 5.7% of United Fire Group shares are held by company insiders. Comparatively, 27.6% of Root shares are held 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.
This is a breakdown of recent ratings and price targets for United Fire Group and Root, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|United Fire Group||0||0||1||0||3.00|
Valuation and Earnings
This table compares United Fire Group and Root’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|United Fire Group||$1.07 billion||0.71||$80.59 million||$2.60||11.52|
|Root||$345.40 million||0.48||-$521.10 million||($29.32)||-0.40|
United Fire Group has higher revenue and earnings than Root. Root is trading at a lower price-to-earnings ratio than United Fire Group, indicating that it is currently the more affordable of the two stocks.
This table compares United Fire Group and Root’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|United Fire Group||6.70%||8.41%||2.35%|
Risk and Volatility
United Fire Group has a beta of 0.04, meaning that its stock price is 96% less volatile than the S&P 500. Comparatively, Root has a beta of 0.03, meaning that its stock price is 97% less volatile than the S&P 500.
United Fire Group beats Root on 12 of the 14 factors compared between the two stocks.
About United Fire Group
United Fire Group, Inc., together with its subsidiaries, provides property and casualty insurance for individuals and businesses in the United States. The company offers commercial and personal lines of property and casualty insurance; and commercial multiple peril and inland marine insurance, as well as assumed reinsurance products. Its commercial policies include fire and allied lines, other liability, automobile, workers' compensation, and fidelity and surety coverage; and personal lines comprise automobile, and fire and allied lines coverage, including homeowners. The company sells its products through a network of independent agencies. United Fire Group, Inc. was founded in 1946 and is headquartered in Cedar Rapids, Iowa.
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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