Critical Survey: Roadzen (NASDAQ:RDZN) & UMC (OTCMKTS:UMCN)

Roadzen (NASDAQ:RDZN) and UMC (OTCMKTS:UMCN) are both small-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, valuation, profitability, analyst recommendations, dividends, institutional ownership and risk.

Earnings & Valuation

This table compares Roadzen and UMC”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Roadzen	$46.72 million	1.99	-$99.67 million	N/A	N/A
UMC	N/A	N/A	N/A	N/A	N/A

UMC has lower revenue, but higher earnings than Roadzen.

Volatility and Risk

Roadzen has a beta of 0.69, suggesting that its stock price is 31% less volatile than the S&P 500. Comparatively, UMC has a beta of 21.99, suggesting that its stock price is 2,099% more volatile than the S&P 500.

Institutional and Insider Ownership

24.7% of Roadzen shares are owned by institutional investors. 16.8% of UMC shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Roadzen and UMC, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Roadzen	0	0	1	0	3.00
UMC	0	0	0	0	N/A

Roadzen presently has a consensus price target of $10.00, suggesting a potential upside of 635.29%. Given Roadzen’s higher probable upside, equities analysts plainly believe Roadzen is more favorable than UMC.

Profitability

This table compares Roadzen and UMC’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%
UMC	N/A	N/A	N/A

Summary

UMC beats Roadzen on 5 of the 9 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 UMC

UMC, Inc. provides medical insurance claims coding and processing, electronic medical records storage, chargemaster review, pricing comparison, and accounts receivable management services to healthcare providers. Its customers primarily include hospitals, medical clinics, and physician practitioners in the United States. The company was formerly known as United Medicorp, Inc. and changed its name to UMC, Inc. in May 2007. UMC, Inc. was incorporated in 1989 and is based in Pampa, Texas.