Head-To-Head Survey: United Fire Group (NASDAQ:UFCS) and Root (NASDAQ:ROOT)

United Fire Group (NASDAQ:UFCSGet Rating) and Root (NASDAQ:ROOTGet 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.

Analyst Recommendations

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
Root 1 4 0 0 1.80

United Fire Group presently has a consensus price target of $37.00, indicating a potential upside of 23.54%. Root has a consensus price target of $23.29, indicating a potential upside of 99.06%. Given Root’s higher possible upside, analysts clearly believe Root is more favorable than United Fire Group.

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.

Profitability

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%
Root -115.99% -80.67% -27.81%

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.

Summary

United Fire Group beats Root on 12 of the 14 factors compared between the two stocks.

About United Fire Group

(Get Rating)

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.

About Root

(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.

Receive News & Ratings for United Fire Group Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for United Fire Group and related companies with MarketBeat.com's FREE daily email newsletter.