Head-To-Head Review: Root (NASDAQ:ROOT) versus MS&AD Insurance Group (OTCMKTS:MSADY)

MS&AD Insurance Group (OTCMKTS:MSADY) and Root (NASDAQ:ROOT) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, valuation, analyst recommendations and dividends.

Analyst Recommendations

This is a summary of current recommendations and price targets for MS&AD Insurance Group and Root, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MS&AD Insurance Group	0	1	0	0	2.00
Root	1	5	2	0	2.13

Root has a consensus price target of $125.80, suggesting a potential upside of 56.62%. Given Root’s stronger consensus rating and higher possible upside, analysts clearly believe Root is more favorable than MS&AD Insurance Group.

Volatility and Risk

MS&AD Insurance Group has a beta of 0.38, suggesting that its stock price is 62% less volatile than the S&P 500. Comparatively, Root has a beta of 2.21, suggesting that its stock price is 121% more volatile than the S&P 500.

Institutional and Insider Ownership

0.0% of MS&AD Insurance Group shares are owned by institutional investors. Comparatively, 59.8% of Root shares are owned by institutional investors. 11.7% of Root shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares MS&AD Insurance Group and Root’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MS&AD Insurance Group	9.93%	17.00%	2.67%
Root	3.80%	23.36%	3.49%

Earnings & Valuation

This table compares MS&AD Insurance Group and Root”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MS&AD Insurance Group	$43.74 billion	0.81	$4.56 billion	$3.26	6.74
Root	$1.18 billion	1.06	$30.90 million	$3.31	24.27

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

Summary

Root beats MS&AD Insurance Group on 11 of the 14 factors compared between the two stocks.

About MS&AD Insurance Group

MS&AD Insurance Group Holdings, Inc., an insurance holding company, provides insurance and financial services worldwide. The company offers domestic non-life insurance; life insurance; international business; financial services; and provides risk-related services. The company was formerly known as Mitsui Sumitomo Insurance Group Holdings, Inc. and changed its name to MS&AD Insurance Group Holdings, Inc. in April 2010. MS&AD Insurance Group Holdings, Inc. was founded in 1918 and is headquartered in Tokyo, Japan.

About Root

Root, Inc. provides insurance products and services in the United States. The company offers automobile, homeowners, and renters insurance products. It operates a direct-to-consumer model; and serves customers primarily through mobile applications, as well as through its website. The company's direct distribution channels also cover digital, media, and referral channels, as well as distribution partners and agencies. Root, Inc. was incorporated in 2015 and is headquartered in Columbus, Ohio.