Financial Analysis: Roadzen (RDZN) vs. Its Peers

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 companies based on the strength of its valuation, dividends, profitability, analyst recommendations, earnings, risk and institutional ownership.

Earnings & 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	$4.25 billion	$533.07 million	28.44

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.

Volatility & Risk

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

Analyst Recommendations

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

	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, indicating a potential upside of 1,010.99%. As a group, “Insurance agents, brokers, & service” companies have a potential downside of 0.94%. Given Roadzen’s stronger consensus rating and higher possible upside, equities analysts clearly believe Roadzen is more favorable than its competitors.

Institutional & Insider Ownership

24.7% of Roadzen shares are held by institutional investors. Comparatively, 54.7% of shares of all “Insurance agents, brokers, & service” companies are held by institutional investors. 19.7% of shares of all “Insurance agents, brokers, & service” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

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%

Summary

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

Roadzen Company Profile

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.