Comparing ICC (NASDAQ:ICCH) & Root (NASDAQ:ROOT)

ICC (NASDAQ:ICCH) and Root (NASDAQ:ROOT) are both small-cap finance companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, earnings, analyst recommendations, valuation, institutional ownership, dividends and risk.

Profitability

This table compares ICC and Root’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ICC	7.13%	9.58%	3.01%
Root	-1.56%	-9.81%	-1.12%

Analyst Ratings

This is a summary of current ratings and target prices for ICC and Root, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ICC	0	0	0	0	0.00
Root	0	6	2	1	2.44

Root has a consensus price target of $59.13, indicating a potential downside of 22.56%. Given Root’s stronger consensus rating and higher possible upside, analysts clearly believe Root is more favorable than ICC.

Valuation & Earnings

This table compares ICC and Root”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ICC	$92.54 million	0.79	$4.26 million	$2.22	10.52
Root	$455.00 million	2.53	-$147.40 million	($1.23)	-62.07

ICC has higher earnings, but lower revenue than Root. Root is trading at a lower price-to-earnings ratio than ICC, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

46.5% of ICC shares are held by institutional investors. Comparatively, 59.8% of Root shares are held by institutional investors. 24.1% of ICC shares are held by insiders. Comparatively, 11.7% of Root shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Volatility and Risk

ICC has a beta of 0.32, suggesting that its share price is 68% less volatile than the S&P 500. Comparatively, Root has a beta of 2.47, suggesting that its share price is 147% more volatile than the S&P 500.

Summary

Root beats ICC on 8 of the 15 factors compared between the two stocks.

About ICC

ICC Holdings, Inc., together with its subsidiaries, provides property and casualty insurance products to the food and beverage industry in the United States. It offers commercial multi-peril, liquor liability, workers' compensation, and umbrella liability insurance products. The company markets its products through independent agents in Arizona, Colorado, Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Ohio, Pennsylvania, Utah, and Wisconsin. ICC Holdings, Inc. was founded in 1950 and is headquartered in Rock Island, Illinois.

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.