Root Inc (ROOT)vsRoyal Bank of Canada (RY)
ROOT
Root Inc
$55.05
+0.27%
FINANCIAL SERVICES · Cap: $871.01M
RY
Royal Bank of Canada
$179.54
-0.24%
FINANCIAL SERVICES · Cap: $250.25B
Smart Verdict
WallStSmart Research — data-driven comparison
Royal Bank of Canada generates 4081% more annual revenue ($63.42B vs $1.52B). RY leads profitability with a 33.1% profit margin vs 2.5%. RY trades at a lower P/E of 16.9x. RY earns a higher WallStSmart Score of 68/100 (B-).
ROOT
Hold43
out of 100
Grade: D
RY
Strong Buy68
out of 100
Grade: B-
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Revenue surging 21.5% year-over-year
Mega-cap, among the largest globally
Keeps 33 of every $100 in revenue as profit
Strong operational efficiency at 46.2%
Generating 37.3B in free cash flow
Attractively priced relative to earnings
Reasonable price relative to book value
Areas to Watch
Smaller company, higher risk/reward
2.5% margin — thin
Operating margin of 2.6%
Earnings declined 76.4%
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull Case : ROOT
The strongest argument for ROOT centers on Revenue Growth. Revenue growth of 21.5% demonstrates continued momentum.
Bull Case : RY
The strongest argument for RY centers on Market Cap, Profit Margin, Operating Margin. Profitability is solid with margins at 33.1% and operating margin at 46.2%.
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 : RY
The primary concerns for RY are PEG Ratio.
Key Dynamics to Monitor
ROOT profiles as a growth stock while RY is a mature play — different risk/reward profiles.
ROOT carries more volatility with a beta of 2.95 — expect wider price swings.
ROOT is growing revenue faster at 21.5% — sustainability is the question.
RY generates stronger free cash flow (37.3B), providing more financial flexibility.
Bottom Line
RY scores higher overall (68/100 vs 43/100), backed by strong 33.1% margins. 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.
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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