WallStSmart

Root Inc (ROOT)vsThe Travelers Companies Inc (TRV)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

The Travelers Companies Inc generates 3119% more annual revenue ($48.83B vs $1.52B). TRV leads profitability with a 12.9% profit margin vs 2.5%. TRV trades at a lower P/E of 10.8x. TRV earns a higher WallStSmart Score of 71/100 (B).

ROOT

Hold

46

out of 100

Grade: D+

Growth: 6.7Profit: 4.5Value: 5.7Quality: 5.8
Piotroski: 4/9Altman Z: -0.39

TRV

Strong Buy

71

out of 100

Grade: B

Growth: 6.0Profit: 7.5Value: 10.0Quality: 5.0
Piotroski: 4/9Altman Z: 0.65
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ROOTSignificantly Overvalued (-265.9%)

Margin of Safety

-265.9%

Fair Value

$16.05

Current Price

$45.59

$29.54 premium

UndervaluedFair: $16.05Overvalued
TRVUndervalued (+75.3%)

Margin of Safety

+75.3%

Fair Value

$1212.62

Current Price

$296.60

$916.02 discount

UndervaluedFair: $1212.62Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ROOT2 strengths · Avg: 8.0/10
Price/BookValuation
2.5x8/10

Reasonable price relative to book value

Revenue GrowthGrowth
21.5%8/10

Revenue surging 21.5% year-over-year

TRV6 strengths · Avg: 8.8/10
P/E RatioValuation
10.8x10/10

Attractively priced relative to earnings

Market CapQuality
$66.16B9/10

Large-cap with strong market position

Return on EquityProfitability
20.7%9/10

Every $100 of equity generates 21 in profit

Debt/EquityHealth
0.289/10

Conservative balance sheet, low leverage

Price/BookValuation
2.0x8/10

Reasonable price relative to book value

Operating MarginProfitability
25.9%8/10

Strong operational efficiency at 25.9%

Areas to Watch

ROOT4 concerns · Avg: 2.8/10
Market CapQuality
$709.14M3/10

Smaller company, higher risk/reward

Profit MarginProfitability
2.5%3/10

2.5% margin — thin

Operating MarginProfitability
2.6%3/10

Operating margin of 2.6%

EPS GrowthGrowth
-76.4%2/10

Earnings declined 76.4%

TRV4 concerns · Avg: 3.0/10
PEG RatioValuation
2.364/10

Expensive relative to growth rate

Revenue GrowthGrowth
3.5%4/10

3.5% revenue growth

Free Cash FlowQuality
$02/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
0.652/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : ROOT

The strongest argument for ROOT centers on Price/Book, Revenue Growth. Revenue growth of 21.5% demonstrates continued momentum.

Bull Case : TRV

The strongest argument for TRV centers on P/E Ratio, Market Cap, Return on Equity.

Bear Case : ROOT

The primary concerns for ROOT are Market Cap, Profit Margin, Operating Margin. Thin 2.5% margins leave little buffer for downturns.

Bear Case : TRV

The primary concerns for TRV are PEG Ratio, Revenue Growth, Free Cash Flow.

Key Dynamics to Monitor

ROOT profiles as a growth stock while TRV is a value play — different risk/reward profiles.

ROOT carries more volatility with a beta of 2.90 — expect wider price swings.

ROOT is growing revenue faster at 21.5% — sustainability is the question.

Monitor INSURANCE - PROPERTY & CASUALTY industry trends, competitive dynamics, and regulatory changes.

Bottom Line

TRV scores higher overall (71/100 vs 46/100). Both earn "Strong 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.

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The Travelers Companies Inc

FINANCIAL SERVICES · INSURANCE - PROPERTY & CASUALTY · USA

The Travelers Companies, Inc., commonly known as Travelers, is an American insurance company.

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