ROOT
Root, Inc.
Insurance - Property & Casualty
Market Cap$772M
5Y Perf.-84.8%
Compare Stocks
2 / 10Try these comparisons:
Stock Comparison
ROOT vs HIPO
Revenue, margins, valuation, and 5-year total return — side by side.
HIPO
Hippo Holdings Inc.
Insurance - Specialty
Market Cap$713M
5Y Perf.-90.4%
ROOT vs HIPO — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | ROOT | HIPO |
|---|---|---|
| Industry | Insurance - Property & Casualty | Insurance - Specialty |
| Market Cap | $772M | $713M |
| Revenue (TTM) | $1.56B | $480M |
| Net Income (TTM) | $56M | $113M |
| Gross Margin | 17.9% | 40.5% |
| Operating Margin | 4.1% | 24.2% |
| Forward P/E | 28.1x | 114.1x |
| Total Debt | $201M | $52M |
| Cash & Equiv. | $690M | $250M |
ROOT vs HIPO — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
ROOT
HIPO
| Stock | Jan 21 | May 26 | Return |
|---|---|---|---|
| Root, Inc. (ROOT) | 100 | 15.2 | -84.8% |
| Hippo Holdings Inc. (HIPO) | 100 | 9.6 | -90.4% |
Price return only. Dividends and distributions are not included.
Quick Verdict: ROOT vs HIPO
Each card shows where this stock fits in a portfolio — not just who wins on paper.
Bottom line: HIPO leads in 4 of 7 categories, making it the strongest pick for profitability and margin quality and capital preservation and lower volatility. Root, Inc. is the stronger pick specifically for growth and revenue expansion and valuation and capital efficiency. As sector peers, any of these can serve as alternatives in the same allocation.
ROOT
Root, Inc.
The Insurance Pick
ROOT is the clearest fit if your priority is growth exposure and long-term compounding.
- Rev growth 29.0%, EPS growth 22.4%, 3Y rev CAGR 69.6%
- -88.7% 10Y total return vs HIPO's -90.5%
- 29.0% revenue growth vs HIPO's 25.9%
Best for: growth exposure and long-term compounding
HIPO
Hippo Holdings Inc.
The Insurance Pick
HIPO carries the broadest edge in this set and is the clearest fit for income & stability and sleep-well-at-night.
- beta 1.40
- Lower volatility, beta 1.40, Low D/E 12.0%, current ratio 0.35x
- Beta 1.40, current ratio 0.35x
Best for: income & stability and sleep-well-at-night
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | ROOT | 29.0% revenue growth vs HIPO's 25.9% |
| Value | ROOT | Lower P/E (28.1x vs 114.1x) |
| Quality / Margins | HIPO | Combined ratio 0.9 vs ROOT's 1.0 (lower = better underwriting) |
| Stability / Safety | HIPO | Beta 1.40 vs ROOT's 2.30, lower leverage |
| Dividends | Tie | Neither stock pays a meaningful dividend |
| Momentum (1Y) | HIPO | +14.0% vs ROOT's -60.0% |
| Efficiency (ROA) | HIPO | 6.0% ROA vs ROOT's 3.7% |
ROOT vs HIPO — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
Segment breakdown not available.
FY 2024
ROOT vs HIPO — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
BEST OVERALLHIPOLAGGINGROOT
ROOTRoot, Inc.
2leads
HIPOHippo Holdings Inc.
3leads
6 Total Categories
CATEGORYLEADERvs ROOTMETRICS WON
Income & Cash FlowRevenue, margins, and cash flow strength
HIPO4/6
Valuation MetricsMultiples, price ratios, and targets
ROOT4/6
Profitability & EfficiencyROE, ROIC, leverage, and quality scores
HIPO5/7
Total Returns1Y, 3Y, 5Y total returns with dividends
ROOT4/6
Risk & VolatilityBeta, volatility, and downside exposure
HIPO2/2
Analyst OutlookRatings, price targets, and dividends
—
—
Income & Cash Flow (Last 12 Months)
HIPO leads this category, winning 4 of 6 comparable metrics.
Income & Cash Flow (Last 12 Months)
ROOT is the larger business by revenue, generating $1.6B annually — 3.3x HIPO's $480M. HIPO is the more profitable business, keeping 23.4% of every revenue dollar as net income compared to ROOT's 3.6%.
| Metric | ROOTRoot, Inc. | HIPOHippo Holdings In… |
|---|---|---|
| RevenueTrailing 12 months | $1.6B | $480M |
| EBITDAEarnings before interest/tax | $73M | $116M |
| Net IncomeAfter-tax profit | $56M | $113M |
| Free Cash FlowCash after capex | $181M | $50M |
| Gross MarginGross profit ÷ Revenue | +17.9% | +40.5% |
| Operating MarginEBIT ÷ Revenue | +4.1% | +24.2% |
| Net MarginNet income ÷ Revenue | +3.6% | +23.4% |
| FCF MarginFCF ÷ Revenue | +11.6% | +10.4% |
| Rev. Growth (YoY)Latest quarter vs prior year | +12.6% | +10.2% |
| EPS Growth (YoY)Latest quarter vs prior year | +95.3% | +114.1% |
HIPO leads this category, winning 4 of 6 comparable metrics.
Valuation Metrics
ROOT leads this category, winning 4 of 6 comparable metrics.
Valuation Metrics
At 12.3x trailing earnings, HIPO trades at a 50% valuation discount to ROOT's 24.6x P/E. On an enterprise value basis, ROOT's 5.4x EV/EBITDA is more attractive than HIPO's 8.1x.
| Metric | ROOTRoot, Inc. | HIPOHippo Holdings In… |
|---|---|---|
| Market CapShares × price | $772M | $713M |
| Enterprise ValueMkt cap + debt − cash | $283M | $515M |
| Trailing P/EPrice ÷ TTM EPS | 24.58x | 12.34x |
| Forward P/EPrice ÷ next-FY EPS est. | 28.09x | 114.13x |
| PEG RatioP/E ÷ EPS growth rate | — | — |
| EV / EBITDAEnterprise value multiple | 5.38x | 8.14x |
| Price / SalesMarket cap ÷ Revenue | 0.51x | 1.52x |
| Price / BookPrice ÷ Book value/share | 2.39x | 1.63x |
| Price / FCFMarket cap ÷ FCF | 4.01x | 78.35x |
ROOT leads this category, winning 4 of 6 comparable metrics.
Profitability & Efficiency
HIPO leads this category, winning 5 of 7 comparable metrics.
Profitability & Efficiency
HIPO delivers a 27.4% return on equity — every $100 of shareholder capital generates $27 in annual profit, vs $15 for ROOT. HIPO carries lower financial leverage with a 0.12x debt-to-equity ratio, signaling a more conservative balance sheet compared to ROOT's 0.51x. On the Piotroski fundamental quality scale (0–9), ROOT scores 6/9 vs HIPO's 5/9, reflecting solid financial health.
| Metric | ROOTRoot, Inc. | HIPOHippo Holdings In… |
|---|---|---|
| ROE (TTM)Return on equity | +15.4% | +27.4% |
| ROA (TTM)Return on assets | +3.7% | +6.0% |
| ROICReturn on invested capital | — | +22.8% |
| ROCEReturn on capital employed | +3.8% | +6.9% |
| Piotroski ScoreFundamental quality 0–9 | 6 | 5 |
| Debt / EquityFinancial leverage | 0.51x | 0.12x |
| Net DebtTotal debt minus cash | -$489M | -$198M |
| Cash & Equiv.Liquid assets | $690M | $250M |
| Total DebtShort + long-term debt | $201M | $52M |
| Interest CoverageEBIT ÷ Interest expense | 1.86x | — |
HIPO leads this category, winning 5 of 7 comparable metrics.
Total Returns (Dividends Reinvested)
ROOT leads this category, winning 4 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in ROOT five years ago would be worth $2,993 today (with dividends reinvested), compared to $1,107 for HIPO. Over the past 12 months, HIPO leads with a +14.0% total return vs ROOT's -60.0%. The 3-year compound annual growth rate (CAGR) favors ROOT at 115.0% vs HIPO's 14.0% — a key indicator of consistent wealth creation.
| Metric | ROOTRoot, Inc. | HIPOHippo Holdings In… |
|---|---|---|
| YTD ReturnYear-to-date | -22.4% | -8.6% |
| 1-Year ReturnPast 12 months | -60.0% | +14.0% |
| 3-Year ReturnCumulative with dividends | +893.7% | +48.1% |
| 5-Year ReturnCumulative with dividends | -70.1% | -88.9% |
| 10-Year ReturnCumulative with dividends | -88.7% | -90.5% |
| CAGR (3Y)Annualised 3-year return | +115.0% | +14.0% |
ROOT leads this category, winning 4 of 6 comparable metrics.
Risk & Volatility
HIPO leads this category, winning 2 of 2 comparable metrics.
Risk & Volatility
HIPO is the less volatile stock with a 1.40 beta — it tends to amplify market swings less than ROOT's 2.30 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. HIPO currently trades 70.3% from its 52-week high vs ROOT's 33.8% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | ROOTRoot, Inc. | HIPOHippo Holdings In… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 2.30x | 1.40x |
| 52-Week HighHighest price in past year | $162.99 | $38.98 |
| 52-Week LowLowest price in past year | $40.91 | $19.92 |
| % of 52W HighCurrent price vs 52-week peak | +33.8% | +70.3% |
| RSI (14)Momentum oscillator 0–100 | 56.3 | 55.2 |
| Avg Volume (50D)Average daily shares traded | 326K | 113K |
HIPO leads this category, winning 2 of 2 comparable metrics.
Analyst Outlook
Insufficient data to determine a leader in this category.
Analyst Outlook
Wall Street rates ROOT as "Hold" and HIPO as "Buy". Consensus price targets imply 36.2% upside for ROOT (target: $75) vs 3.6% for HIPO (target: $28).
| Metric | ROOTRoot, Inc. | HIPOHippo Holdings In… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Hold | Buy |
| Price TargetConsensus 12-month target | $75.00 | $28.38 |
| # AnalystsCovering analysts | 14 | 6 |
| Dividend YieldAnnual dividend ÷ price | — | — |
| Dividend StreakConsecutive years of raises | — | — |
| Dividend / ShareAnnual DPS | — | — |
| Buyback YieldShare repurchases ÷ mkt cap | 0.0% | +2.0% |
Insufficient data to determine a leader in this category.
Key Takeaway
HIPO leads in 3 of 6 categories (Income & Cash Flow, Profitability & Efficiency). ROOT leads in 2 (Valuation Metrics, Total Returns).
Best OverallHippo Holdings Inc. (HIPO)Leads 3 of 6 categories
Loading custom metrics...
ROOT vs HIPO: Frequently Asked Questions
10 questions · data-driven answers · updated daily
01Is ROOT or HIPO a better buy right now?
For growth investors, Root, Inc.
(ROOT) is the stronger pick with 29. 0% revenue growth year-over-year, versus 25. 9% for Hippo Holdings Inc. (HIPO). Hippo Holdings Inc. (HIPO) offers the better valuation at 12. 3x trailing P/E (114. 1x forward), making it the more compelling value choice. Analysts rate Hippo Holdings Inc. (HIPO) a "Buy" — based on 6 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which has the better valuation — ROOT or HIPO?
On trailing P/E, Hippo Holdings Inc.
(HIPO) is the cheapest at 12. 3x versus Root, Inc. at 24. 6x. On forward P/E, Root, Inc. is actually cheaper at 28. 1x — notably different from the trailing picture, reflecting expected earnings growth.
03Which is the better long-term investment — ROOT or HIPO?
Over the past 5 years, Root, Inc.
(ROOT) delivered a total return of -70. 1%, compared to -88. 9% for Hippo Holdings Inc. (HIPO). Over 10 years, the gap is even starker: ROOT returned -88. 7% versus HIPO's -90. 5%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — ROOT or HIPO?
By beta (market sensitivity over 5 years), Hippo Holdings Inc.
(HIPO) is the lower-risk stock at 1. 40β versus Root, Inc. 's 2. 30β — meaning ROOT is approximately 64% more volatile than HIPO relative to the S&P 500. On balance sheet safety, Hippo Holdings Inc. (HIPO) carries a lower debt/equity ratio of 12% versus 51% for Root, Inc. — giving it more financial flexibility in a downturn.
05Which is growing faster — ROOT or HIPO?
By revenue growth (latest reported year), Root, Inc.
(ROOT) is pulling ahead at 29. 0% versus 25. 9% for Hippo Holdings Inc. (HIPO). On earnings-per-share growth, the picture is similar: Hippo Holdings Inc. grew EPS 235. 4% year-over-year, compared to 22. 4% for Root, Inc.. Over a 3-year CAGR, ROOT leads at 69. 6% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.
06Which has better profit margins — ROOT or HIPO?
Hippo Holdings Inc.
(HIPO) is the more profitable company, earning 12. 3% net margin versus 2. 7% for Root, Inc. — meaning it keeps 12. 3% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: HIPO leads at 13. 5% versus 2. 7% for ROOT. At the gross margin level — before operating expenses — HIPO leads at 50. 9%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
07Is ROOT or HIPO more undervalued right now?
On forward earnings alone, Root, Inc.
(ROOT) trades at 28. 1x forward P/E versus 114. 1x for Hippo Holdings Inc. — 86. 0x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for ROOT: 36. 2% to $75. 00.
08Which pays a better dividend — ROOT or HIPO?
None of the stocks in this comparison currently pay a material dividend.
All are effectively zero-yield and should be held for capital appreciation rather than income.
09Is ROOT or HIPO better for a retirement portfolio?
For long-horizon retirement investors, Hippo Holdings Inc.
(HIPO) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding. Root, Inc. (ROOT) carries a higher beta of 2. 30 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (HIPO: -90. 5%, ROOT: -88. 7%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
10What are the main differences between ROOT and HIPO?
Both stocks operate in the Financial Services sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.
These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
Find Stocks Like These
Explore pre-built screens for each stock's profile, or build a custom screen to find stocks that outperform both.
Revenue Growth>
%
(ROOT: 12.6% · HIPO: 10.2%)Net Margin>
%
(ROOT: 3.6% · HIPO: 23.4%)P/E Ratio<
x
(ROOT: 24.6x · HIPO: 12.3x)You Might Also Compare
Based on how these companies actually compete and overlap — not just which sector they're filed under.