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 $926.2M against $716.7M — 1.3× the size. Root, Inc. trades at the lower P/E: 9.2× against 28.3×. Hippo Holdings Inc. grew revenue faster over the last twelve months: 20.6% against 7.89%. Hippo Holdings Inc. has the higher net margin (5.90% vs 4.96%) and the higher return on invested capital (11.8% vs 0.00%). Across the 19 metrics below, Root, Inc. leads on 10 and Hippo Holdings Inc. on 9.

Valuation

Metric HIPO ROOT Insurance Property & Casualty median
P/E 28.34 9.21 12.17
P/S 1.69 0.45 1.26
P/B 1.96 2.15 1.85
Price to free cash flow 8.31 4.18 8.04
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 3.53% 10.86% 8.20%
Free cash flow yield 12.04% 23.92% 11.86%

Profitability

Metric HIPO ROOT Insurance Property & Casualty median
Gross margin 100.00% 39.44% 37.39%
Operating margin 6.63% 6.68% 14.67%
Net margin 5.90% 4.96% 10.16%
Free cash flow margin 20.97% 10.86% 18.60%
Return on equity 7.19% 26.15% 16.59%
Return on assets 1.38% 4.67% 3.38%
Return on invested capital 11.84% 0.00% 9.43%

Growth

Metric HIPO ROOT Insurance Property & Casualty median
Revenue growth (TTM) 20.55% 7.89% 5.70%
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 0.96 1.01 0.49
Net debt to EBITDA 38.15 (6.65) 0.08

Dividend

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

Size

Metric HIPO ROOT Insurance Property & Casualty median
Market cap 926.17m 716.74m 2.64b

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