UMC (OTCMKTS:UMCN) vs. Roadzen (NASDAQ:RDZN) Critical Review

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

Institutional and Insider Ownership

24.7% of Roadzen shares are owned by institutional investors. 16.8% of UMC shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
UMC	N/A	N/A	N/A	N/A	N/A
Roadzen	$46.72 million	1.99	-$99.67 million	N/A	N/A

UMC has higher earnings, but lower revenue than Roadzen.

Risk & Volatility

UMC has a beta of 21.99, meaning that its stock price is 2,099% more volatile than the S&P 500. Comparatively, Roadzen has a beta of 0.69, meaning that its stock price is 31% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for UMC and Roadzen, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
UMC	0	0	0	0	N/A
Roadzen	0	0	1	0	3.00

Roadzen has a consensus target price of $10.00, suggesting a potential upside of 635.29%. Given Roadzen’s higher possible upside, analysts clearly believe Roadzen is more favorable than UMC.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
UMC	N/A	N/A	N/A
Roadzen	-287.82%	-31,166.20%	-221.81%

Summary

UMC beats Roadzen on 5 of the 9 factors compared between the two stocks.

About UMC

UMC, Inc. provides medical insurance claims coding and processing, electronic medical records storage, chargemaster review, pricing comparison, and accounts receivable management services to healthcare providers. Its customers primarily include hospitals, medical clinics, and physician practitioners in the United States. The company was formerly known as United Medicorp, Inc. and changed its name to UMC, Inc. in May 2007. UMC, Inc. was incorporated in 1989 and is based in Pampa, Texas.

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.