Root, Inc. (ROOT) vs Trupanion, Inc. (TRUP)

Root, Inc. and Trupanion, Inc. are both Insurance Property & Casualty companies. Trupanion, Inc. is the larger, with a market value of $1.2B against $782.6M — 1.6× the size. Root, Inc. trades at the lower P/E: 13.6× against 52.1×. Root, Inc. grew revenue faster over the last twelve months: 14.9% against 11.8%. Root, Inc. has the higher net margin (3.71% vs 1.53%) and the higher return on invested capital (85.8% vs 12.8%). Across the 19 metrics below, Root, Inc. leads on 15 and Trupanion, Inc. on 4.

Valuation

Metric ROOT TRUP Insurance Property & Casualty median
P/E 13.60 52.07 10.75
P/S 0.51 0.81 1.21
P/B 2.42 3.00 1.99
Price to free cash flow 4.45 14.96 7.76
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 7.35% 1.92% 9.08%
Free cash flow yield 22.45% 6.68% 12.11%

Profitability

Metric ROOT TRUP Insurance Property & Casualty median
Gross margin 39.30% 16.55% 41.16%
Operating margin 5.51% 1.57% 15.09%
Net margin 3.71% 1.53% 11.51%
Free cash flow margin 11.43% 5.40% 17.46%
Return on equity 20.34% 6.07% 17.34%
Return on assets 3.57% 2.61% 3.74%
Return on invested capital 85.75% 12.78% 12.06%

Growth

Metric ROOT TRUP Insurance Property & Casualty median
Revenue growth (TTM) 14.86% 11.80% 8.02%
EPS growth (last fiscal year) 28.96% 295.65% 39.61%
Revenue growth, 5-year CAGR 34.33% 23.45% 9.23%
Net income growth, 5-year CAGR 0.00% 0.00% 10.09%

Health

Metric ROOT TRUP Insurance Property & Casualty median
Debt to equity 0.45 0.26 0.25
Current ratio 1.01 1.77 0.42
Net debt to EBITDA (6.65) (8.49) 0.08

Dividend

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

Size

Metric ROOT TRUP Insurance Property & Casualty median
Market cap 782.56m 1.22b 2.67b

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