Head to Head Analysis: Brown & Brown (NYSE:BRO) & Roadzen (NASDAQ:RDZN)

Roadzen (NASDAQ:RDZN) and Brown & Brown (NYSE:BRO) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, earnings, profitability, analyst recommendations, risk, institutional ownership and valuation.

Insider & Institutional Ownership

24.7% of Roadzen shares are owned by institutional investors. Comparatively, 71.0% of Brown & Brown shares are owned by institutional investors. 17.0% of Brown & Brown shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Risk and Volatility

Roadzen has a beta of 0.61, meaning that its share price is 39% less volatile than the S&P 500. Comparatively, Brown & Brown has a beta of 0.82, meaning that its share price is 18% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Roadzen and Brown & Brown, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Roadzen	0	0	1	0	3.00
Brown & Brown	1	3	6	0	2.50

Roadzen currently has a consensus target price of $10.00, suggesting a potential upside of 575.68%. Brown & Brown has a consensus target price of $99.20, suggesting a potential downside of 3.25%. Given Roadzen’s stronger consensus rating and higher possible upside, analysts clearly believe Roadzen is more favorable than Brown & Brown.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Roadzen	$50.04 million	2.02	-$99.67 million	N/A	N/A
Brown & Brown	$4.45 billion	6.58	$870.50 million	$3.25	31.55

Brown & Brown has higher revenue and earnings than Roadzen.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Roadzen	-287.82%	-26,668.69%	-186.03%
Brown & Brown	21.95%	17.00%	6.45%

Summary

Brown & Brown beats Roadzen on 10 of the 12 factors compared between the two stocks.

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.

About Brown & Brown

Brown & Brown, Inc. markets and sells insurance products and services in the United States, Canada, Ireland, the United Kingdom, and internationally. It operates through four segments: Retail, National Programs, Wholesale Brokerage, and Services. The Retail segment provides property and casualty, employee benefits insurance products, personal insurance products, specialties insurance products, risk management strategies, loss control survey and analysis, consultancy, and claims processing services. It serves commercial, public and quasi-public entities, professional, and individual customers. The National Programs segment offers professional liability and related package insurance products for dentistry, legal, eyecare, insurance, financial, physicians, real estate title professionals, as well as supplementary insurance products related to weddings, events, medical facilities, and cyber liabilities. This segment also provides public entity-related and specialty programs through a network of independent agents; and program management services for insurance carrier partners. The Wholesale Brokerage segment markets and sells excess and surplus commercial and personal lines insurance through independent agents and brokers. The Services segment offers third-party claims administration and medical utilization management services in the workers' compensation and all-lines liability arenas, Medicare Set-aside, Social Security disability, Medicare benefits advocacy, and claims adjusting services. Brown & Brown, Inc. was founded in 1939 and is headquartered in Daytona Beach, Florida.