Heritage Insurance Holdings, Inc. (HRTG) vs Root, Inc. (ROOT)

Heritage Insurance Holdings, Inc. and Root, Inc. are both Insurance Property & Casualty companies. Heritage Insurance Holdings, Inc. is the larger, with a market value of $1.1B against $782.6M — 1.4× the size. Heritage Insurance Holdings, Inc. trades at the lower P/E: 5.1× against 13.6×. Root, Inc. grew revenue faster over the last twelve months: 14.9% against 1.54%. Heritage Insurance Holdings, Inc. has the higher net margin (25.2% vs 3.71%) and the higher return on invested capital (489.1% vs 85.8%). Across the 20 metrics below, Heritage Insurance Holdings, Inc. leads on 15 and Root, Inc. on 5.

Valuation

Metric HRTG ROOT Insurance Property & Casualty median
P/E 5.08 13.60 10.75
P/S 1.26 0.51 1.21
P/B 1.89 2.42 1.99
Price to free cash flow 3.57 4.45 7.76
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 19.68% 7.35% 9.08%
Free cash flow yield 28.03% 22.45% 12.11%

Profitability

Metric HRTG ROOT Insurance Property & Casualty median
Gross margin 45.39% 39.30% 41.16%
Operating margin 34.46% 5.51% 15.09%
Net margin 25.19% 3.71% 11.51%
Free cash flow margin 35.21% 11.43% 17.46%
Return on equity 45.27% 20.34% 17.34%
Return on assets 8.63% 3.57% 3.74%
Return on invested capital 489.08% 85.75% 12.06%

Growth

Metric HRTG ROOT Insurance Property & Casualty median
Revenue growth (TTM) 1.54% 14.86% 8.02%
EPS growth (last fiscal year) 214.43% 28.96% 39.61%
Revenue growth, 5-year CAGR 7.38% 34.33% 9.23%
Net income growth, 5-year CAGR 83.79% 0.00% 10.09%

Health

Metric HRTG ROOT Insurance Property & Casualty median
Debt to equity 0.13 0.45 0.25
Current ratio 0.83 1.01 0.42
Net debt to EBITDA (1.77) (6.65) 0.08

Dividend

Metric HRTG ROOT Insurance Property & Casualty median
Dividend yield — — 1.50%
Payout ratio — — 0.14

Size

Metric HRTG ROOT Insurance Property & Casualty median
Market cap 1.09b 782.56m 2.67b

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