China Pacific Insurance (Group) (OTCMKTS:CHPXF – Get Free Report) and Root (NASDAQ:ROOT – Get Free Report) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, earnings, profitability, analyst recommendations, risk, institutional ownership and dividends.
Analyst Recommendations
This is a breakdown of recent ratings and price targets for China Pacific Insurance (Group) and Root, as provided 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 price target of $62.25, suggesting a potential upside of 11.58%. Given Root’s stronger consensus rating and higher probable upside, analysts plainly believe Root is more favorable than China Pacific Insurance (Group).
Valuation and Earnings
| 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 | 0.57 | $40.30 million | $3.54 | 15.76 |
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.
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% |
Insider and Institutional Ownership
10.0% of China Pacific Insurance (Group) shares are owned by institutional investors. Comparatively, 59.8% of Root shares are owned by institutional investors. 12.0% of Root shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Summary
Root beats China Pacific Insurance (Group) on 11 of the 11 factors compared between the two stocks.
About China Pacific Insurance (Group)
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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.
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