Roadzen (RDZN) and The Competition Critical Analysis

Roadzen (NASDAQ:RDZN) is one of 40 public companies in the “Insurance agents, brokers, & service” industry, but how does it weigh in compared to its rivals? We will compare Roadzen to similar businesses based on the strength of its earnings, institutional ownership, analyst recommendations, profitability, valuation, dividends and risk.

Profitability

This table compares Roadzen and its rivals’ 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%
Roadzen Competitors	-4.77%	-1,130.66%	-6.54%

Insider & Institutional Ownership

24.7% of Roadzen shares are held by institutional investors. Comparatively, 55.3% of shares of all “Insurance agents, brokers, & service” companies are held by institutional investors. 19.8% of shares of all “Insurance agents, brokers, & service” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Volatility & Risk

Roadzen has a beta of 0.66, meaning that its share price is 34% less volatile than the S&P 500. Comparatively, Roadzen’s rivals have a beta of 1.57, meaning that their average share price is 57% more volatile than the S&P 500.

Earnings and Valuation

This table compares Roadzen and its rivals revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Roadzen	$46.72 million	-$99.67 million	-0.30
Roadzen Competitors	$8.76 billion	$740.03 million	19.31

Roadzen’s rivals have higher revenue and earnings than Roadzen. Roadzen is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Analyst Recommendations

This is a summary of current ratings for Roadzen and its rivals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Roadzen	0	0	2	0	3.00
Roadzen Competitors	199	1285	1433	36	2.44

Roadzen presently has a consensus price target of $8.00, indicating a potential upside of 781.35%. As a group, “Insurance agents, brokers, & service” companies have a potential downside of 3.55%. Given Roadzen’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Roadzen is more favorable than its rivals.

Summary

Roadzen rivals beat Roadzen on 10 of the 13 factors compared.

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.