Roadzen (NASDAQ:RDZN) & Arthur J. Gallagher & Co. (NYSE:AJG) Critical Analysis

Roadzen (NASDAQ:RDZN) and Arthur J. Gallagher & Co. (NYSE:AJG) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their dividends, profitability, valuation, institutional ownership, risk, earnings and analyst recommendations.

Insider & Institutional Ownership

24.7% of Roadzen shares are held by institutional investors. Comparatively, 85.5% of Arthur J. Gallagher & Co. shares are held by institutional investors. 1.6% of Arthur J. Gallagher & Co. shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Risk and Volatility

Roadzen has a beta of 0.66, suggesting that its share price is 34% less volatile than the S&P 500. Comparatively, Arthur J. Gallagher & Co. has a beta of 0.72, suggesting that its share price is 28% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Roadzen and Arthur J. Gallagher & Co., as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Roadzen	0	0	2	0	3.00
Arthur J. Gallagher & Co.	3	7	4	0	2.07

Roadzen currently has a consensus target price of $8.00, suggesting a potential upside of 716.99%. Arthur J. Gallagher & Co. has a consensus target price of $287.00, suggesting a potential downside of 1.23%. Given Roadzen’s stronger consensus rating and higher probable upside, research analysts plainly believe Roadzen is more favorable than Arthur J. Gallagher & Co..

Profitability

This table compares Roadzen and Arthur J. Gallagher & Co.’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Roadzen	-287.82%	-31,166.20%	-221.81%
Arthur J. Gallagher & Co.	10.40%	19.12%	3.78%

Earnings & Valuation

This table compares Roadzen and Arthur J. Gallagher & Co.”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Roadzen	$46.72 million	1.43	-$99.67 million	($3.00)	-0.33
Arthur J. Gallagher & Co.	$10.07 billion	6.33	$969.50 million	$5.25	55.34

Arthur J. Gallagher & Co. has higher revenue and earnings than Roadzen. Roadzen is trading at a lower price-to-earnings ratio than Arthur J. Gallagher & Co., indicating that it is currently the more affordable of the two stocks.

Summary

Arthur J. Gallagher & Co. beats Roadzen on 12 of the 14 factors compared between the two stocks.

About Roadzen

Roadzen, Inc., an insurtech company, provides various insurance products in the United States and internationally. It offers insurance as a service platform, including Via, which enables fleets, carmakers, and insurers to inspect a vehicle using computer vision; Global Distribution Network that enables the configuration, customer quote, payment, and administration of any insurance policy with any insurance carrier as the underwriter; xClaim, which enables digital, touchless, and real-time resolution of claims; StrandD, a digital, real-time dispatch, and tracking for roadside assistance and first notice of loss during accident claims; Good Driving that enables insurers and fleets to recognize drivers, train drivers, and build usage based insurance programs; and Drivebuddy AI, which provides driver-assistance capabilities. The company also provides insurance distribution platform that enables product creation and underwriting, re-insurer backing, and API exchange; and distribution, pre-inspection assistance, telematics, and roadside assistance. In addition, it offers insurance broker services. Roadzen, Inc. was founded in 2015 and is based in Burlingame, California.

About Arthur J. Gallagher & Co.

Arthur J. Gallagher & Co., together with its subsidiaries, provides insurance and reinsurance brokerage, consulting, and third-party property/casualty claims settlement and administration services to entities and individuals worldwide. It operates in Brokerage and Risk Management segments. The Brokerage segment offers retail and wholesale insurance and reinsurance brokerage services; assists retail brokers and other non-affiliated brokers in the placement of specialized and hard-to-place insurance; and acts as a brokerage wholesaler, managing general agent, and managing general underwriter for distributing specialized insurance coverages to underwriting enterprises. This segment performs activities, including marketing, underwriting, issuing policies, collecting premiums, appointing and supervising other agents, paying claims, and negotiating reinsurance; and offers services in the areas of insurance and reinsurance placement, risk of loss management, and management of employer sponsored benefit programs. The Risk Management segment provides contract claim settlement and administration services; and claims management, loss control consulting, and insurance property appraisal services. The company offers its services through a network of correspondent brokers and consultants. It serves commercial, industrial, public, religious, and nonprofit entities, as well as underwriting enterprises. Arthur J. Gallagher & Co. was founded in 1927 and is headquartered in Rolling Meadows, Illinois.