AON (NYSE:AON) & Roadzen (NASDAQ:RDZN) Critical Review

AON (NYSE:AON) and Roadzen (NASDAQ:RDZN) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, profitability, dividends, institutional ownership, valuation, analyst recommendations and risk.

Profitability

This table compares AON and Roadzen’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AON	19.04%	-1,083.00%	8.23%
Roadzen	N/A	N/A	N/A

Analyst Ratings

This is a summary of recent ratings and recommmendations for AON and Roadzen, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AON	3	8	2	0	1.92
Roadzen	0	0	1	0	3.00

AON currently has a consensus target price of $319.50, suggesting a potential upside of 8.15%. Roadzen has a consensus target price of $10.00, suggesting a potential upside of 383.09%. Given Roadzen’s stronger consensus rating and higher probable upside, analysts clearly believe Roadzen is more favorable than AON.

Valuation and Earnings

This table compares AON and Roadzen’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AON	$13.38 billion	4.80	$2.56 billion	$12.76	23.15
Roadzen	$46.72 million	3.03	-$99.67 million	N/A	N/A

AON has higher revenue and earnings than Roadzen.

Insider & Institutional Ownership

86.1% of AON shares are owned by institutional investors. Comparatively, 24.7% of Roadzen shares are owned by institutional investors. 1.2% of AON shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Volatility & Risk

AON has a beta of 0.91, suggesting that its stock price is 9% less volatile than the S&P 500. Comparatively, Roadzen has a beta of 0.62, suggesting that its stock price is 38% less volatile than the S&P 500.

Summary

AON beats Roadzen on 9 of the 12 factors compared between the two stocks.

About AON

Aon plc, a professional services firm, provides a range of risk and human capital solutions worldwide. It offers commercial risk solutions, including retail brokerage, specialty solutions, global risk consulting and captives management, and affinity programs; and health solutions, such as health and benefits brokerages, and health care exchanges. The company also provides treaty and facultative reinsurance, as well as insurance-linked securities, capital raising, strategic advice, restructuring, and mergers and acquisitions services; and corporate finance advisory services. In addition, it offers strategic design consulting services on their retirement programs, actuarial services, and risk management services; and advice services on developing and maintaining investment programs across various plan types, including defined benefit plans, defined contribution plans, endowments, and foundations for public and private companies, and other institutions. Aon plc was founded in 1919 and is headquartered in Dublin, Ireland.

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.