Root (NASDAQ:ROOT) & China Pacific Insurance (Group) (OTCMKTS:CHPXF) Critical Analysis

China Pacific Insurance (Group) (OTCMKTS:CHPXF) and Root (NASDAQ:ROOT) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, earnings, dividends, risk, profitability, analyst recommendations and institutional ownership.

Profitability

This table compares China Pacific Insurance (Group) and Root’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
China Pacific Insurance (Group)	N/A	N/A	N/A
Root	3.78%	19.72%	3.56%

Valuation & Earnings

This table compares China Pacific Insurance (Group) and Root”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
China Pacific Insurance (Group)	N/A	N/A	N/A	$1.12	3.26
Root	$1.52 billion	0.59	$40.30 million	$3.54	16.28

Root has higher revenue and earnings than China Pacific Insurance (Group). China Pacific Insurance (Group) is trading at a lower price-to-earnings ratio than Root, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

10.0% of China Pacific Insurance (Group) shares are held by institutional investors. Comparatively, 59.8% of Root shares are held by institutional investors. 12.0% of Root shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and price targets for China Pacific Insurance (Group) and Root, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
China Pacific Insurance (Group)	0	0	0	0	0.00
Root	1	5	1	0	2.00

Root has a consensus target price of $62.25, indicating a potential upside of 8.02%. Given Root’s stronger consensus rating and higher probable upside, analysts plainly believe Root is more favorable than China Pacific Insurance (Group).

Summary

Root beats China Pacific Insurance (Group) on 11 of the 11 factors compared between the two stocks.

About China Pacific Insurance (Group)

China Pacific Insurance (Group) Co., Ltd., together with its subsidiaries, provides insurance products to individual and institutional customers in the People's Republic of China. It operates through Life and Health Insurance, Property and Casualty Insurance, and Other Businesses segments. The company offers life, health, automobile, liability, agricultural, property, accident, and engineering insurance products; pension and annuity insurance products; investments with insurance funds, etc.; and reinsurance products. It also provides real estate and property management, consulting, medical and health consulting, insurance agency, fund management, seniors and disabled care, elderly, nursing, real estate development and operation, technical consulting, technical, cloud computing, bid data, business, hospital management, and medical services; and senior living property investment, construction, and management services. In addition, the company offers investment management, pension fund and insurance asset management, private equity investment fund management, and non-residential real estate leasing services. It sells its products directly, as well as through agents, bancassurance, telemarketing, and internet sales. China Pacific Insurance (Group) Co., Ltd. was founded in 1991 and is headquartered in Shanghai, the People's Republic of China.

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.