Hippo Holdings Inc. (HIPO) vs Root, Inc. (ROOT)

Hippo Holdings Inc. and Root, Inc. are both Insurance Property & Casualty companies. Hippo Holdings Inc. and Root, Inc. are of similar size ($798.0M and $750.2M). Hippo Holdings Inc. trades at the lower P/E: 6.4× against 12.8×. Hippo Holdings Inc. grew revenue faster over the last twelve months: 19.3% against 14.9%. Hippo Holdings Inc. has the higher net margin (23.9% vs 3.71%) and the lower return on invested capital (8.68% vs 85.8%). Across the 21 metrics below, Hippo Holdings Inc. leads on 13 and Root, Inc. on 8.

Valuation

Metric HIPO ROOT Insurance Property & Casualty median
P/E 6.39 12.78 10.29
P/S 1.58 0.47 1.17
P/B 1.72 2.27 1.83
Price to free cash flow 14.61 4.18 7.48
EV/EBITDA 17.21 3.68 7.49
EV/Sales 1.14 0.23 1.13
Earnings yield 15.65% 7.83% 9.50%
Free cash flow yield 6.84% 23.91% 13.29%

Profitability

Metric HIPO ROOT Insurance Property & Casualty median
Gross margin 100.00% 39.30% 41.16%
Operating margin 6.62% 5.51% 15.09%
Net margin 23.92% 3.71% 11.51%
Free cash flow margin 11.47% 11.43% 17.59%
Return on equity 30.34% 20.34% 18.19%
Return on assets 6.03% 3.57% 3.74%
Return on invested capital 8.68% 85.75% 12.06%

Growth

Metric HIPO ROOT Insurance Property & Casualty median
Revenue growth (TTM) 19.34% 14.86% 8.69%
EPS growth (last fiscal year) 235.37% 28.96% —
Revenue growth, 5-year CAGR 55.46% 34.33% 9.23%
Net income growth, 5-year CAGR 0.00% 0.00% 10.09%

Health

Metric HIPO ROOT Insurance Property & Casualty median
Debt to equity 0.10 0.45 0.25
Current ratio 0.95 1.01 0.42
Net debt to EBITDA 38.15 (6.65) 0.08

Dividend

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

Size

Metric HIPO ROOT Insurance Property & Casualty median
Market cap 798.01m 750.15m 2.44b

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