Head-To-Head Survey: Root (NASDAQ:ROOT) & QBE Insurance Group (OTCMKTS:QBIEY)

Root (NASDAQ:ROOT) and QBE Insurance Group (OTCMKTS:QBIEY) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, analyst recommendations, valuation, profitability, earnings and risk.

Earnings and Valuation

This table compares Root and QBE Insurance Group’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Root	$455.00 million	1.93	-$147.40 million	($10.23)	-5.87
QBE Insurance Group	N/A	N/A	N/A	($0.31)	-37.03

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

Analyst Ratings

This is a summary of current ratings and price targets for Root and QBE Insurance Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Root	0	5	4	0	2.44
QBE Insurance Group	0	0	0	0	N/A

Root currently has a consensus target price of $21.88, suggesting a potential downside of 63.55%. Given Root’s higher probable upside, analysts clearly believe Root is more favorable than QBE Insurance Group.

Institutional and Insider Ownership

59.8% of Root shares are held by institutional investors. Comparatively, 0.0% of QBE Insurance Group shares are held by institutional investors. 10.3% of Root shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Root and QBE Insurance Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Root	-32.40%	-73.62%	-11.83%
QBE Insurance Group	N/A	N/A	N/A

Summary

Root beats QBE Insurance Group on 6 of the 10 factors compared between the two stocks.

About Root

Root, Inc. provides insurance products and services in the United States. The company offers automobile, homeowners, and renters insurance products. It operates a direct-to-consumer model; and serves customers primarily through mobile applications, as well as through its website. The company's direct distribution channels also cover digital, media, and referral channels, as well as distribution partners and agencies. Root, Inc. was incorporated in 2015 and is headquartered in Columbus, Ohio.

About QBE Insurance Group

QBE Insurance Group Limited engages in underwriting general insurance and reinsurance risks in the Australia Pacific, North America, and internationally. It offers range of commercial, personal, and specialty products, such as commercial and domestic property, agriculture, public/product liability, motor and motor casualty, professional indemnity, workers' compensation, accident, health, financial and credit, and other insurance products, as well as marine, energy and aviation insurance products, and risk management solutions. The company also manages Lloyd's syndicates, as well as provides investment management services. QBE Insurance Group Limited was founded in 1886 and is headquartered in Sydney, Australia.