Root Inc (ROOT)vsRoyal Bank of Canada (RY)
ROOT
Root Inc
$53.54
+1.71%
FINANCIAL SERVICES · Cap: $868.86M
RY
Royal Bank of Canada
$194.04
-0.48%
FINANCIAL SERVICES · Cap: $277.29B
Smart Verdict
WallStSmart Research — data-driven comparison
Royal Bank of Canada generates 4109% more annual revenue ($65.72B vs $1.56B). RY leads profitability with a 33.7% profit margin vs 3.5%. ROOT trades at a lower P/E of 16.2x. RY earns a higher WallStSmart Score of 70/100 (B-).
ROOT
Buy57
out of 100
Grade: C
RY
Strong Buy70
out of 100
Grade: B-
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Earnings expanding 95.3% YoY
Attractively priced relative to earnings
Reasonable price relative to book value
Mega-cap, among the largest globally
Keeps 34 of every $100 in revenue as profit
Strong operational efficiency at 45.3%
Generating 20.8B in free cash flow
Reasonable price relative to book value
16.1% revenue growth
Areas to Watch
Smaller company, higher risk/reward
3.5% margin — thin
Weak financial health signals
Distress zone — elevated risk
Expensive relative to growth rate
Distress zone — elevated risk
Elevated debt levels
Comparative Analysis Report
WallStSmart ResearchBull Case : ROOT
The strongest argument for ROOT centers on EPS Growth, P/E Ratio, Price/Book. Revenue growth of 12.6% 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 33.7% and operating margin at 45.3%. Revenue growth of 16.1% demonstrates continued momentum.
Bear Case : ROOT
The primary concerns for ROOT are Market Cap, Profit Margin, Piotroski F-Score. Thin 3.5% margins leave little buffer for downturns.
Bear Case : RY
The primary concerns for RY are PEG Ratio, Altman Z-Score, Debt/Equity. Debt-to-equity of 2.77 is elevated, increasing financial risk.
Key Dynamics to Monitor
ROOT profiles as a value stock while RY is a growth play — different risk/reward profiles.
ROOT carries more volatility with a beta of 2.86 — expect wider price swings.
RY is growing revenue faster at 16.1% — sustainability is the question.
RY generates stronger free cash flow (20.8B), providing more financial flexibility.
Bottom Line
RY scores higher overall (70/100 vs 57/100), backed by strong 33.7% margins and 16.1% revenue growth. Both earn "Strong Buy" and "Buy" 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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