American Coastal Insurance Corporation (ACIC) vs Root, Inc. (ROOT)

American Coastal Insurance Corporation and Root, Inc. are both Insurance Property & Casualty companies. Root, Inc. is the larger, with a market value of $716.7M against $485.4M — 1.5× the size. American Coastal Insurance Corporation trades at the lower P/E: 5.7× against 9.2×. Root, Inc. grew revenue faster over the last twelve months: 7.89% against −5.31%. American Coastal Insurance Corporation has the higher net margin (28.0% vs 4.96%) and the higher return on invested capital (64.1% vs 0.00%). Across the 18 metrics below, American Coastal Insurance Corporation leads on 10 and Root, Inc. on 8.

Valuation

Metric ACIC ROOT Insurance Property & Casualty median
P/E 5.65 9.21 12.17
P/S 1.56 0.45 1.26
P/B 1.37 2.15 1.85
Price to free cash flow n/m 4.18 8.04
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 17.70% 10.86% 8.20%
Free cash flow yield (6.39%) 23.92% 11.86%

Profitability

Metric ACIC ROOT Insurance Property & Casualty median
Gross margin 54.47% 39.44% 37.39%
Operating margin 40.85% 6.68% 14.67%
Net margin 28.02% 4.96% 10.16%
Free cash flow margin 0.00% 10.86% 18.60%
Return on equity 25.51% 26.15% 16.59%
Return on assets 7.59% 4.67% 3.38%
Return on invested capital 64.11% 0.00% 9.43%

Growth

Metric ACIC ROOT Insurance Property & Casualty median
Revenue growth (TTM) (5.31%) 7.89% 5.70%
EPS growth (last fiscal year) 39.61% 28.96% 39.61%
Revenue growth, 5-year CAGR (16.90%) 34.33% 9.23%
Net income growth, 5-year CAGR 0.00% 0.00% 10.09%

Health

Metric ACIC ROOT Insurance Property & Casualty median
Debt to equity 0.42 0.45 0.25
Current ratio 0.91 1.01 0.49
Net debt to EBITDA (0.91) (6.65) 0.08

Dividend

Metric ACIC ROOT Insurance Property & Casualty median
Dividend yield — — 1.56%
Payout ratio — — 0.15

Size

Metric ACIC ROOT Insurance Property & Casualty median
Market cap 485.43m 716.74m 2.64b

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