Waterdrop (WDH) Competitors

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

Is ROOT or WDH more profitable?

Waterdrop has a net margin of 11.69% compared to Root's net margin of -1.56%. Waterdrop's return on equity of 7.02% beat Root's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Root	-1.56%	-9.81%	-1.12%
Waterdrop	11.69%	7.02%	5.27%

Does the MarketBeat Community prefer ROOT or WDH?

Root received 17 more outperform votes than Waterdrop when rated by MarketBeat users. However, 71.43% of users gave Waterdrop an outperform vote while only 27.55% of users gave Root an outperform vote.

Company	Underperform	Outperform
Root	Outperform Votes 27 27.55%	Underperform Votes 71 72.45%
Waterdrop	Outperform Votes 10 71.43%	Underperform Votes 4 28.57%

Which has stronger earnings and valuation, ROOT or WDH?

Waterdrop has lower revenue, but higher earnings than Root. Root is trading at a lower price-to-earnings ratio than Waterdrop, 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	2.83	-$147.40M	-$1.23	-69.36
Waterdrop	$370.53M	1.18	$23.06M	$0.12	9.88

Do insiders and institutionals hold more shares of ROOT or WDH?

59.8% of Root shares are held by institutional investors. Comparatively, 2.0% of Waterdrop shares are held by institutional investors. 11.7% of Root shares are held by insiders. Comparatively, 24.6% of Waterdrop shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Does the media prefer ROOT or WDH?

In the previous week, Root had 1 more articles in the media than Waterdrop. MarketBeat recorded 3 mentions for Root and 2 mentions for Waterdrop. Waterdrop's average media sentiment score of 0.93 beat Root's score of 0.22 indicating that Waterdrop is being referred to more favorably in the news media.

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

Which has more risk and volatility, ROOT or WDH?

Root has a beta of 2.55, indicating that its stock price is 155% more volatile than the S&P 500. Comparatively, Waterdrop has a beta of -0.25, indicating that its stock price is 125% less volatile than the S&P 500.

Do analysts rate ROOT or WDH?

Root presently has a consensus target price of $59.38, suggesting a potential downside of 30.40%. Given Root's stronger consensus rating and higher possible upside, research analysts plainly believe Root is more favorable than Waterdrop.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Root	0 Sell rating(s)	6 Hold rating(s)	2 Buy rating(s)	1 Strong Buy rating(s)	2.44
Waterdrop	0 Sell rating(s)	0 Hold rating(s)	0 Buy rating(s)	0 Strong Buy rating(s)	0.00

Summary

Root beats Waterdrop on 10 of the 18 factors compared between the two stocks.