Unico American (NASDAQ:UNAM – Get Free Report) and Root (NASDAQ:ROOT – Get Free Report) are both small-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, dividends, earnings, valuation, institutional ownership, profitability and analyst recommendations.
Analyst Ratings
This is a breakdown of recent recommendations and price targets for Unico American and Root, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Unico American | 0 | 0 | 0 | 0 | N/A |
| Root | 1 | 6 | 1 | 0 | 2.00 |
Root has a consensus price target of $8.00, indicating a potential downside of 14.89%. Given Root’s higher probable upside, analysts plainly believe Root is more favorable than Unico American.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Unico American | N/A | N/A | N/A |
| Root | -68.96% | -75.00% | -15.70% |
Risk & Volatility
Unico American has a beta of -0.43, suggesting that its stock price is 143% less volatile than the S&P 500. Comparatively, Root has a beta of 1.58, suggesting that its stock price is 58% more volatile than the S&P 500.
Earnings & Valuation
This table compares Unico American and Root’s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Unico American | $34.63 million | 0.00 | -$5.67 million | ($2.43) | 0.00 |
| Root | $310.80 million | 0.43 | -$297.70 million | ($14.10) | -0.67 |
Unico American has higher earnings, but lower revenue than Root. Root is trading at a lower price-to-earnings ratio than Unico American, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
18.3% of Unico American shares are owned by institutional investors. Comparatively, 43.5% of Root shares are owned by institutional investors. 44.4% of Unico American shares are owned by company insiders. Comparatively, 10.3% of Root shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Summary
Unico American beats Root on 7 of the 13 factors compared between the two stocks.
About Unico American
Unico American Corporation, an insurance holding company, underwrites property and casualty insurance in Arizona, California, Nevada, Oregon, and Washington. The company offers property, casualty, health, and life insurance products, as well as insurance premium financing and membership association services. Its commercial property coverage insures against loss or damage to buildings, inventory, and equipment from natural disasters, including hurricanes, windstorms, hail, water, explosions, and severe winter weather, as well as other events, such as theft and vandalism, fires, storms, and financial loss due to business interruption resulting from covered property damage. The company also offers commercial liability coverage that insures against third party liability from accidents occurring on the insured's premises or arising out of its operation; and writes policies to insure commercial property and commercial liability risks on a mono-line basis. In addition, it provides group dental, vision, and life insurance policies. Unico American Corporation markets its insurance products primarily through a network of independent brokers and agents. The company was incorporated in 1969 and is headquartered in Calabasas, California.
About Root
Root, Inc. provides insurance products and services in the United States. The company offers automobile, homeowners, and renters insurance products. The company operates a direct-to-consumer model and serves customers primarily through mobile applications, as well as through its website. Its direct distribution channels also cover digital, media, and referral channels, as well as distribution partners and agencies. The company was incorporated in 2015 and is headquartered in Columbus, Ohio.
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