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 $750.2M against $445.9M — 1.7× the size. American Coastal Insurance Corporation trades at the lower P/E: 4.5× against 12.8×. Root, Inc. grew revenue faster over the last twelve months: 14.9% against 3.29%. American Coastal Insurance Corporation has the higher net margin (30.3% vs 3.71%) and the lower return on invested capital (47.2% vs 85.8%). Across the 20 metrics below, American Coastal Insurance Corporation leads on 11 and Root, Inc. on 9.

Valuation

Metric ACIC ROOT Insurance Property & Casualty median
P/E 4.52 12.78 10.29
P/S 1.37 0.47 1.17
P/B 1.33 2.27 1.83
Price to free cash flow n/m 4.18 7.48
EV/EBITDA 1.94 3.68 7.49
EV/Sales 0.87 0.23 1.13
Earnings yield 22.13% 7.83% 9.50%
Free cash flow yield (6.87%) 23.91% 13.29%

Profitability

Metric ACIC ROOT Insurance Property & Casualty median
Gross margin 56.62% 39.30% 41.16%
Operating margin 43.27% 5.51% 15.09%
Net margin 30.31% 3.71% 11.51%
Free cash flow margin (9.39%) 11.43% 17.59%
Return on equity 31.65% 20.34% 18.19%
Return on assets 7.74% 3.57% 3.74%
Return on invested capital 47.19% 85.75% 12.06%

Growth

Metric ACIC ROOT Insurance Property & Casualty median
Revenue growth (TTM) 3.29% 14.86% 8.69%
EPS growth (last fiscal year) 39.61% 28.96% —
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 0.45 0.45 0.25
Current ratio 0.88 1.01 0.42
Net debt to EBITDA (0.91) (6.65) 0.08

Dividend

Metric ACIC ROOT Insurance Property & Casualty median
Dividend yield 50.00% — 2.79%
Payout ratio — 0.00 0.27

Size

Metric ACIC ROOT Insurance Property & Casualty median
Market cap 445.87m 750.15m 2.44b

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