Hannover Ruck (OTCMKTS:HVRRY) & Root (NASDAQ:ROOT) Head-To-Head Comparison

Root (NASDAQ:ROOT) and Hannover Ruck (OTCMKTS:HVRRY) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, dividends, profitability, analyst recommendations, earnings, valuation and risk.

Profitability

This table compares Root and Hannover Ruck’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Root	3.78%	19.72%	3.56%
Hannover Ruck	9.84%	19.51%	3.73%

Earnings and Valuation

This table compares Root and Hannover Ruck”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Root	$1.57 billion	0.52	$40.30 million	$3.54	14.55
Hannover Ruck	$30.30 billion	1.17	$2.99 billion	$4.23	11.55

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

Analyst Ratings

This is a summary of recent ratings and price targets for Root and Hannover Ruck, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Root	0	5	2	0	2.29
Hannover Ruck	1	1	0	2	2.75

Root presently has a consensus price target of $82.25, indicating a potential upside of 59.71%. Given Root’s higher probable upside, equities analysts clearly believe Root is more favorable than Hannover Ruck.

Institutional & Insider Ownership

59.8% of Root shares are owned by institutional investors. Comparatively, 0.0% of Hannover Ruck shares are owned by institutional investors. 12.0% of Root shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Volatility and Risk

Root has a beta of 2.89, suggesting that its stock price is 189% more volatile than the S&P 500. Comparatively, Hannover Ruck has a beta of 0.2, suggesting that its stock price is 80% less volatile than the S&P 500.

Summary

Hannover Ruck beats Root on 8 of the 15 factors compared between the two stocks.

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.

About Hannover Ruck

Hannover Rück SE, together with its subsidiaries, provides reinsurance products and services in Germany, the United Kingdom, France, Europe, the United States, Asia, Australia, Africa, and internationally. It operates through Property & Casualty Reinsurance; and Life & Health Reinsurance segments. The company provides property and casualty reinsurance solutions for agricultural, livestock, and bloodstock; aviation and space; catastrophe XL; credit, surety, and political risks; facultative; and marine and offshore energy businesses, as well as insurance-linked securities and structured reinsurance. It offers risk solutions in the areas of critical illness, disability, health, longevity, long term care, and mortality. In addition, the company offers group life, retirement, lifestyle, credit life, and Takaful reinsurance products. Further, the company provides various financial solutions, including new-business financing; monetization of embedded value; reserve and solvency relief; and reinsurance and solvency II businesses. The company was formerly known as Hannover Rückversicherung AG and changed its name to Hannover Rück SE in March 2013. Hannover Rück SE was founded in 1966 and is based in Hanover, Germany. Hannover Rück SE operates as a subsidiary of Talanx AG.