Roadzen (NASDAQ:RDZN) & Waterdrop (NYSE:WDH) Financial Comparison

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

Analyst Ratings

This is a summary of current ratings for Waterdrop and Roadzen, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Waterdrop	0	0	1	0	3.00
Roadzen	0	0	1	0	3.00

Waterdrop currently has a consensus price target of $2.80, indicating a potential upside of 139.32%. Roadzen has a consensus price target of $10.00, indicating a potential upside of 545.16%. Given Roadzen’s higher probable upside, analysts plainly believe Roadzen is more favorable than Waterdrop.

Valuation and Earnings

This table compares Waterdrop and Roadzen’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Waterdrop	$370.53 million	1.17	$23.06 million	$0.06	19.50
Roadzen	N/A	N/A	N/A	N/A	N/A

Waterdrop has higher revenue and earnings than Roadzen.

Institutional & Insider Ownership

2.0% of Waterdrop shares are owned by institutional investors. Comparatively, 24.7% of Roadzen shares are owned by institutional investors. 24.6% of Waterdrop shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Waterdrop and Roadzen’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Waterdrop	7.28%	4.21%	3.19%
Roadzen	N/A	N/A	N/A

Risk & Volatility

Waterdrop has a beta of -0.23, suggesting that its stock price is 123% less volatile than the S&P 500. Comparatively, Roadzen has a beta of 0.71, suggesting that its stock price is 29% less volatile than the S&P 500.

Summary

Waterdrop beats Roadzen on 5 of the 8 factors compared between the two stocks.

About Waterdrop

Waterdrop Inc., through its subsidiaries, provides online insurance brokerage services to match and connect users with related insurance products underwritten by insurance companies in the People's Republic of China. The company offers short-term health and long-term health and life insurance products and services. It also operates a medical crowdfunding platform. Waterdrop Inc. was founded in 2016 and is headquartered in Beijing, the People's Republic of China.

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.