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NOAH vs ROOT

NOAH
Noah Holdings Limited
NEUTRAL
Price
$10.41
Market Cap
$853.2M
Sector
Financial Services
AI Confidence
85%
ROOT
Root, Inc.
NEUTRAL
Price
$54.70
Market Cap
$850.8M
Sector
Financial Services
AI Confidence
80%

Valuation

P/E Ratio
NOAH
8.97
ROOT
23.18
Forward P/E
NOAH
6.73
ROOT
17.09
P/B Ratio
NOAH
0.5
ROOT
2.98
P/S Ratio
NOAH
0.33
ROOT
0.56
EV/EBITDA
NOAH
-1.43
ROOT
7.65

Profitability

Gross Margin
NOAH
53.39%
ROOT
39.08%
Operating Margin
NOAH
35.15%
ROOT
2.65%
Profit Margin
NOAH
21.41%
ROOT
2.53%
ROE
NOAH
5.57%
ROOT
11.32%
ROA
NOAH
4.13%
ROOT
2.44%

Growth

Revenue Growth
NOAH
12.5%
ROOT
21.5%
Earnings Growth
NOAH
-88.2%
ROOT
-76.4%

Financial Health

Debt/Equity
NOAH
0.01
ROOT
0.52
Current Ratio
NOAH
4.46
ROOT
2.45
Quick Ratio
NOAH
4.23
ROOT
2.12

Dividends

Dividend Yield
NOAH
5.56%
ROOT
--
Payout Ratio
NOAH
52.25%
ROOT
0.0%

AI Verdict

NOAH NEUTRAL

NOAH presents a classic 'value trap' profile, characterized by a very weak Piotroski F-Score of 2/9 indicating deteriorating fundamental health despite deep valuation discounts. While the Graham Number ($23.42) suggests significant asset-based undervaluation and the balance sheet is pristine with near-zero debt, the catastrophic collapse in earnings growth (-88.20% YoY) offsets these gains. The stock is trading near its growth-based intrinsic value ($8.12) but far below its book value, suggesting the market is pricing in significant structural risks. A sustainable dividend provides a floor, but the bearish technical trend and poor insider sentiment limit immediate upside.

Strengths
Extremely low leverage with a Debt/Equity ratio of 0.01
Strong liquidity position with a Current Ratio of 4.46
Deep value metrics including a Price/Book of 0.50 and P/S of 0.33
Risks
Severe earnings deterioration with YoY growth at -88.20%
Weak fundamental health as evidenced by a Piotroski F-Score of 2/9
Poor long-term price performance (-66.2% over 5 years)
ROOT NEUTRAL

Root, Inc. presents a complex profile with a Piotroski F-Score of 4/9, indicating stable but not strong financial health. While the company has demonstrated an impressive turnaround in earnings, consistently beating estimates by massive margins, the current price of $54.70 trades at a significant premium to its Graham Number ($31.21) and Intrinsic Value ($16.52). This valuation gap, combined with bearish insider selling and a 0/100 technical trend, offsets the bullish analyst sentiment and revenue growth.

Strengths
Consistent and massive earnings beats over the last 4 quarters
Strong revenue growth of 21.50% YoY
Healthy liquidity with a Current Ratio of 2.45
Risks
Significant overvaluation relative to Graham and Intrinsic value models
Bearish insider sentiment with 10 sell transactions and 0 buys
Negative YoY earnings growth (-76.40%) despite recent quarterly beats

Compare Another Pair

NOAH vs ROOT: Head-to-Head Comparison

This page compares Noah Holdings Limited (NOAH) and Root, Inc. (ROOT) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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