Roadzen (RDZN) & Its Peers Critical Analysis

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

Insider & 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, endowments and hedge funds believe a company is poised for long-term growth.

Earnings & Valuation

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Roadzen	$46.72 million	-$99.67 million	-0.32
Roadzen Competitors	$8.81 billion	$740.03 million	20.67

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

Profitability

This table compares Roadzen and its peers’ 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	-4.51%	-1,129.33%	-6.30%

Risk and Volatility

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

Analyst Ratings

This is a summary of current ratings and price targets for Roadzen and its peers, 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	1281	1428	36	2.44

Roadzen currently has a consensus price target of $8.00, suggesting a potential upside of 724.74%. As a group, “Insurance agents, brokers, & service” companies have a potential upside of 0.85%. Given Roadzen’s stronger consensus rating and higher possible upside, equities analysts plainly believe Roadzen is more favorable than its peers.

Summary

Roadzen peers 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.