Roadzen (RDZN) and Its Rivals Financial Analysis

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

Risk and Volatility

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

Profitability

This table compares Roadzen and its competitors’ 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%	-1,130.77%	-6.56%

Insider and Institutional Ownership

24.7% of Roadzen shares are owned by institutional investors. Comparatively, 55.3% of shares of all “Insurance agents, brokers, & service” companies are owned by institutional investors. 19.8% of shares of all “Insurance agents, brokers, & service” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current recommendations for Roadzen and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Roadzen	0	0	2	0	3.00
Roadzen Competitors	199	1285	1434	36	2.44

Roadzen presently has a consensus target price of $8.00, suggesting a potential upside of 896.76%. As a group, “Insurance agents, brokers, & service” companies have a potential downside of 4.50%. Given Roadzen’s stronger consensus rating and higher probable upside, equities analysts plainly believe Roadzen is more favorable than its competitors.

Earnings and Valuation

This table compares Roadzen and its competitors top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Roadzen	$46.72 million	-$99.67 million	-0.27
Roadzen Competitors	$8.85 billion	$740.03 million	19.76

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

Summary

Roadzen competitors 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.