Financial Review: Root (NASDAQ:ROOT) and Atlas Financial (OTCMKTS:AFHIF)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Root	-1.56%	-9.81%	-1.12%
Atlas Financial	N/A	N/A	N/A

Insider & Institutional Ownership

59.8% of Root shares are held by institutional investors. 11.7% of Root shares are held by company insiders. Comparatively, 14.4% of Atlas Financial shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Root and Atlas Financial”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Root	$455.00 million	3.61	-$147.40 million	($1.23)	-88.54
Atlas Financial	N/A	N/A	N/A	N/A	N/A

Atlas Financial has lower revenue, but higher earnings than Root.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Root and Atlas Financial, as provided by MarketBeat.com.

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

Root presently has a consensus target price of $59.38, suggesting a potential downside of 45.48%. Given Root’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Root is more favorable than Atlas Financial.

Summary

Root beats Atlas Financial on 6 of the 10 factors compared between the two stocks.

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.

About Atlas Financial

Atlas Financial Holdings, Inc., through its subsidiary, Anchor Group Management, Inc., engages in generating, underwriting, and servicing of commercial automobile insurance in the United States. The company's automobile insurance products provide insurance coverage in three areas, including liability, accident benefits, and physical damage. It focuses on the light commercial automobile sector, including taxi cabs, non-emergency paratransit, limousine, livery, and business autos. It distributes its insurance products through a network of independent retail agents. Atlas Financial Holdings, Inc. was founded in 2009 and is headquartered in Schaumburg, Illinois.