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

Hippo Holdings Inc. and Root, Inc. are both Insurance Property & Casualty companies. Hippo Holdings Inc. is the larger, with a market value of $930.5M against $782.6M — 1.2× the size. Hippo Holdings Inc. trades at the lower P/E: 7.4× against 13.6×. 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 19 metrics below, Hippo Holdings Inc. leads on 13 and Root, Inc. on 6.

Valuation

Metric HIPO ROOT Insurance Property & Casualty median
P/E 7.37 13.60 10.75
P/S 1.82 0.51 1.21
P/B 1.99 2.42 1.99
Price to free cash flow 16.84 4.45 7.76
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 13.58% 7.35% 9.08%
Free cash flow yield 5.94% 22.45% 12.11%

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% 17.46%
Return on equity 30.34% 20.34% 17.34%
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% 8.02%
EPS growth (last fiscal year) 235.37% 28.96% 39.61%
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 — — 1.50%
Payout ratio — — 0.14

Size

Metric HIPO ROOT Insurance Property & Casualty median
Market cap 930.49m 782.56m 2.67b

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