Root (ROOT) Competitors

Root (NASDAQ:ROOT) and Lemonade (NYSE:LMND) are both small-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, risk, analyst recommendations, profitability, earnings, community ranking, media sentiment, institutional ownership and valuation.

Do insiders & institutionals believe in ROOT or LMND?

59.8% of Root shares are owned by institutional investors. Comparatively, 80.3% of Lemonade shares are owned by institutional investors. 11.7% of Root shares are owned by company insiders. Comparatively, 12.5% of Lemonade shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Which has more volatility and risk, ROOT or LMND?

Root has a beta of 2.34, meaning that its stock price is 134% more volatile than the S&P 500. Comparatively, Lemonade has a beta of 1.68, meaning that its stock price is 68% more volatile than the S&P 500.

Does the MarketBeat Community prefer ROOT or LMND?

Root and Lemonade both received 27 outperform votes by MarketBeat users. However, 30.34% of users gave Lemonade an outperform vote while only 28.42% of users gave Root an outperform vote.

Company	Underperform	Outperform
Root	Outperform Votes 27 28.42%	Underperform Votes 68 71.58%
Lemonade	Outperform Votes 27 30.34%	Underperform Votes 62 69.66%

Does the media favor ROOT or LMND?

In the previous week, Lemonade had 1 more articles in the media than Root. MarketBeat recorded 10 mentions for Lemonade and 9 mentions for Root. Root's average media sentiment score of 0.70 beat Lemonade's score of 0.49 indicating that Root is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Root	1 Very Positive mention(s)	1 Positive mention(s)	2 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
Lemonade	2 Very Positive mention(s)	1 Positive mention(s)	2 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Neutral

Do analysts recommend ROOT or LMND?

Root currently has a consensus price target of $59.13, indicating a potential downside of 17.13%. Lemonade has a consensus price target of $21.33, indicating a potential downside of 13.60%. Given Lemonade's higher possible upside, analysts clearly believe Lemonade is more favorable than Root.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Root	0 Sell rating(s)	4 Hold rating(s)	3 Buy rating(s)	1 Strong Buy rating(s)	2.63
Lemonade	2 Sell rating(s)	4 Hold rating(s)	1 Buy rating(s)	0 Strong Buy rating(s)	1.86

Which has higher valuation & earnings, ROOT or LMND?

Root has higher revenue and earnings than Lemonade. Root is trading at a lower price-to-earnings ratio than Lemonade, indicating that it is currently the more affordable of the two stocks.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Root	$455M	2.33	-$147.40M	-$1.23	-57.41
Lemonade	$429.80M	4.14	-$236.90M	-$3.04	-8.21

Is ROOT or LMND more profitable?

Root has a net margin of -1.56% compared to Lemonade's net margin of -43.51%. Root's return on equity of -9.81% beat Lemonade's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Root	-1.56%	-9.81%	-1.12%
Lemonade	-43.51%	-32.85%	-12.59%

Summary

Root beats Lemonade on 11 of the 18 factors compared between the two stocks.