Root (NASDAQ:ROOT) vs. Kinsale Capital Group (NYSE:KNSL) Head to Head Review

Root (NASDAQ:ROOT – Get Rating) and Kinsale Capital Group (NYSE:KNSL – Get Rating) are both finance companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, earnings, analyst recommendations, institutional ownership, valuation, risk and profitability.

Insider & Institutional Ownership

70.4% of Root shares are held by institutional investors. Comparatively, 86.0% of Kinsale Capital Group shares are held by institutional investors. 27.6% of Root shares are held by company insiders. Comparatively, 6.0% of Kinsale Capital Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Root and Kinsale Capital Group’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Root	$295.50 million	0.24	-$297.70 million	($18.02)	-0.28
Kinsale Capital Group	$895.83 million	8.52	$159.11 million	$7.90	41.73

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

Volatility and Risk

Root has a beta of 0.97, suggesting that its share price is 3% less volatile than the S&P 500. Comparatively, Kinsale Capital Group has a beta of 0.86, suggesting that its share price is 14% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Root and Kinsale Capital Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Root	1	6	1	0	2.00
Kinsale Capital Group	1	2	2	0	2.20

Root currently has a consensus price target of $10.44, indicating a potential upside of 108.80%. Kinsale Capital Group has a consensus price target of $334.00, indicating a potential upside of 1.31%. Given Root’s higher possible upside, analysts clearly believe Root is more favorable than Kinsale Capital Group.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Root	-85.65%	-81.67%	-18.83%
Kinsale Capital Group	20.44%	28.34%	7.67%

Summary

Kinsale Capital Group beats Root on 11 of the 14 factors compared between the two stocks.

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.

About Kinsale Capital Group

(Get Rating)

Kinsale Capital Group, Inc. is a holding company, which engages in the provision of property and casualty insurance services. It operates the Excess and Surplus Lines Insurance segment. The Excess and Surplus Lines Insurance segment provides commercial excess and surplus lines liability and property insurance products through underwriting divisions. The company was founded by Michael P. Kehoe on June 3, 2009 and is headquartered in Richmond, VA.