Critical Analysis: Roadzen (RDZN) & Its Competitors

Roadzen (NASDAQ:RDZN) is one of 36 public companies in the “Insurance agents, brokers, & service” industry, but how does it contrast to its competitors? We will compare Roadzen to related businesses based on the strength of its earnings, valuation, analyst recommendations, institutional ownership, profitability, dividends and risk.

Risk & Volatility

Roadzen has a beta of 0.63, indicating that its share price is 37% less volatile than the S&P 500. Comparatively, Roadzen’s competitors have a beta of 1.61, indicating that their average share price is 61% more volatile than the S&P 500.

Insider & Institutional Ownership

24.7% of Roadzen shares are owned by institutional investors. Comparatively, 54.7% of shares of all “Insurance agents, brokers, & service” companies are owned by institutional investors. 19.7% of shares of all “Insurance agents, brokers, & service” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Earnings and Valuation

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Roadzen	$50.04 million	-$99.67 million	-0.30
Roadzen Competitors	$4.17 billion	$533.07 million	29.20

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.

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	-4.62%	-1,277.43%	-7.51%

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Roadzen	0	0	1	0	3.00
Roadzen Competitors	193	1213	1337	34	2.44

Roadzen presently has a consensus target price of $10.00, suggesting a potential upside of 1,010.99%. As a group, “Insurance agents, brokers, & service” companies have a potential upside of 0.63%. Given Roadzen’s stronger consensus rating and higher probable upside, equities analysts clearly believe Roadzen is more favorable than its competitors.

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.