SiriusPoint (NYSE:SPNT) vs. Root (NASDAQ:ROOT) Critical Contrast

SiriusPoint (NYSE:SPNT – 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 earnings, analyst recommendations, valuation, dividends, risk, profitability and institutional ownership.

Earnings and Valuation

This table compares SiriusPoint and Root’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SiriusPoint	$2.11 billion	0.55	-$386.80 million	($2.52)	-2.85
Root	$310.80 million	0.16	-$297.70 million	($20.54)	-0.17

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

Risk & Volatility

SiriusPoint has a beta of 0.99, suggesting that its share price is 1% less volatile than the S&P 500. Comparatively, Root has a beta of 0.97, suggesting that its share price is 3% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings for SiriusPoint and Root, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SiriusPoint	0	0	0	0	N/A
Root	1	6	1	0	2.00

Root has a consensus target price of $12.29, indicating a potential upside of 247.18%. Given Root’s higher possible upside, analysts clearly believe Root is more favorable than SiriusPoint.

Institutional & Insider Ownership

47.3% of SiriusPoint shares are held by institutional investors. Comparatively, 70.4% of Root shares are held by institutional investors. 0.7% of SiriusPoint 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, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares SiriusPoint and Root’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SiriusPoint	-18.37%	-19.62%	-3.53%
Root	-92.86%	-78.82%	-20.11%

Summary

SiriusPoint beats Root on 7 of the 13 factors compared between the two stocks.

About SiriusPoint

(Get Rating)

SiriusPoint Ltd. engages in the provision of insurance and reinsurance services. The insurance lines include: Accident and Health, Environmental, Property, Energy, Workers’ Compensation, and Aviation and Space. The reinsurance lines include: Marine and Energy, Casualty, Aviation and Space, and Credit and Bond. The company was founded in 1945 and is headquartered in Pembroke, Bermuda.

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.