Root Inc (ROOT)vsRoyal Bank of Canada (RY)
ROOT
Root Inc
$49.84
-1.87%
FINANCIAL SERVICES · Cap: $806.89M
RY
Royal Bank of Canada
$203.30
-0.13%
FINANCIAL SERVICES · Cap: $291.55B
Smart Verdict
WallStSmart Research — data-driven comparison
Royal Bank of Canada generates 4184% more annual revenue ($67.15B vs $1.57B). RY leads profitability with a 33.9% profit margin vs 3.7%. ROOT trades at a lower P/E of 15.3x. RY earns a higher WallStSmart Score of 63/100 (C+).
ROOT
Hold49
out of 100
Grade: D+
RY
Buy63
out of 100
Grade: C+
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Reasonable price relative to book value
Mega-cap, among the largest globally
Keeps 34 of every $100 in revenue as profit
Strong operational efficiency at 46.4%
Reasonable price relative to book value
Areas to Watch
1.6% revenue growth
Smaller company, higher risk/reward
3.7% margin — thin
Weak financial health signals
Expensive relative to growth rate
Negative free cash flow — burning cash
Distress zone — elevated risk
Elevated debt levels
Comparative Analysis Report
WallStSmart ResearchBull Case : ROOT
The strongest argument for ROOT centers on P/E Ratio, Price/Book.
Bull Case : RY
The strongest argument for RY centers on Market Cap, Profit Margin, Operating Margin. Profitability is solid with margins at 33.9% and operating margin at 46.4%.
Bear Case : ROOT
The primary concerns for ROOT are Revenue Growth, Market Cap, Profit Margin. Thin 3.7% margins leave little buffer for downturns.
Bear Case : RY
The primary concerns for RY are PEG Ratio, Free Cash Flow, Altman Z-Score. Debt-to-equity of 2.88 is elevated, increasing financial risk.
Key Dynamics to Monitor
ROOT profiles as a value stock while RY is a mature play — different risk/reward profiles.
ROOT carries more volatility with a beta of 2.92 — expect wider price swings.
RY is growing revenue faster at 8.9% — sustainability is the question.
ROOT generates stronger free cash flow (54M), providing more financial flexibility.
Bottom Line
RY scores higher overall (63/100 vs 49/100), backed by strong 33.9% margins. Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Root Inc
FINANCIAL SERVICES · INSURANCE - PROPERTY & CASUALTY · USA
Root, Inc. offers insurance products and services in the United States. The company is headquartered in Columbus, Ohio.
Visit Website →Royal Bank of Canada
FINANCIAL SERVICES · BANKS - DIVERSIFIED · USA
Royal Bank of Canada is a globally diversified financial services company. The company is headquartered in Toronto, Canada.
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