Root (NASDAQ:ROOT) & Maiden (NASDAQ:MHLD) Head-To-Head Review

Root (NASDAQ:ROOT) and Maiden (NASDAQ:MHLD) are both small-cap finance companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, earnings, risk, dividends, valuation, analyst recommendations and profitability.

Institutional & Insider Ownership

59.8% of Root shares are owned by institutional investors. Comparatively, 21.8% of Maiden shares are owned by institutional investors. 11.7% of Root shares are owned by insiders. Comparatively, 8.2% of Maiden shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Root and Maiden’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Root	$455.00 million	2.20	-$147.40 million	($7.77)	-8.63
Maiden	$89.23 million	2.21	-$38.57 million	($0.26)	-7.58

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

Analyst Ratings

This is a breakdown of recent recommendations for Root and Maiden, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Root	0	5	4	0	2.44
Maiden	0	0	0	0	N/A

Root currently has a consensus price target of $41.89, suggesting a potential downside of 37.54%. Given Root’s higher possible upside, equities analysts clearly believe Root is more favorable than Maiden.

Volatility & Risk

Root has a beta of 2.57, indicating that its stock price is 157% more volatile than the S&P 500. Comparatively, Maiden has a beta of 1.27, indicating that its stock price is 27% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Root	-17.61%	-62.36%	-8.64%
Maiden	-26.14%	-7.79%	-1.29%

Summary

Root beats Maiden on 7 of the 13 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 Maiden

Maiden Holdings, Ltd., through its subsidiaries, provides property and casualty insurance and reinsurance solutions to regional and specialty insurers in Europe, North America, and internationally. It operates in two segments, Diversified Reinsurance and AmTrust Reinsurance. The company writes treaties on a quota share basis and excess of loss basis. It also offers auto and credit life insurance products through its insurer partners to retail clients; and underwrites risks on a retroactive basis, which provides a range of legacy services to small insurance entities. Maiden Holdings, Ltd. was founded in 2007 and is headquartered in Pembroke, Bermuda.