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

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

Valuation & Earnings

This table compares Atlas Financial 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
Atlas Financial	N/A	N/A	N/A	N/A	N/A
Root	$455.00 million	3.61	-$147.40 million	($1.23)	-88.54

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

Insider and Institutional Ownership

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

Profitability

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

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

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Atlas Financial and Root, as provided by MarketBeat.

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

Root has a consensus price target of $59.38, suggesting a potential downside of 45.48%. Given Root’s stronger consensus rating and higher probable upside, analysts plainly 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 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.

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.