Roadzen (NASDAQ:RDZN – Get Free Report) and Heritage Insurance (NYSE:HRTG – Get Free Report) are both small-cap finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, risk, valuation, earnings and dividends.
Insider & Institutional Ownership
24.7% of Roadzen shares are held by institutional investors. Comparatively, 59.0% of Heritage Insurance shares are held by institutional investors. 26.8% of Roadzen shares are held by company insiders. Comparatively, 15.2% of Heritage Insurance shares are held by company 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.
Volatility & Risk
Roadzen has a beta of 0.41, meaning that its stock price is 59% less volatile than the S&P 500. Comparatively, Heritage Insurance has a beta of 0.96, meaning that its stock price is 4% less volatile than the S&P 500.
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Roadzen | $44.30 million | 2.45 | -$72.87 million | ($0.20) | -6.80 |
| Heritage Insurance | $816.98 million | 1.06 | $61.54 million | $4.83 | 5.78 |
Heritage Insurance has higher revenue and earnings than Roadzen. Roadzen is trading at a lower price-to-earnings ratio than Heritage Insurance, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Roadzen and Heritage Insurance’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Roadzen | -30.61% | N/A | -40.70% |
| Heritage Insurance | 17.72% | 41.44% | 6.23% |
Analyst Recommendations
This is a summary of current ratings and price targets for Roadzen and Heritage Insurance, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Roadzen | 1 | 0 | 0 | 0 | 1.00 |
| Heritage Insurance | 0 | 1 | 3 | 0 | 2.75 |
Heritage Insurance has a consensus price target of $32.50, indicating a potential upside of 16.32%. Given Heritage Insurance’s stronger consensus rating and higher possible upside, analysts clearly believe Heritage Insurance is more favorable than Roadzen.
Summary
Heritage Insurance beats Roadzen on 12 of the 14 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 Heritage Insurance
Heritage Insurance Holdings, Inc., through its subsidiaries, provides personal and commercial residential insurance products. The company offers personal residential insurance in Alabama, California, Connecticut, Delaware, Florida, Georgia, Hawaii, Maryland, Massachusetts, Mississippi, New Jersey, New York, North Carolina, Rhode Island, South Carolina, and Virginia; commercial residential insurance for properties in Florida, New Jersey, and New York; and licensed in the state of Pennsylvania, as well as personal residential and wind-only property insurance. It also provides restoration, emergency, and recovery services; property management, and reinsurance services; homeowners insurance products, including single-family, homeowners or duplex, and condominium owners; and dwelling fire insurance policies. In addition, the company provides personal line policies through a network of retail independent agents, wholesale agents, and a partnership with a direct agency, as well as distribute indirectly to retail locations through wholesale agency relationships. Further, it offers personal and commercial insurance policies through a network of independent agencies. The company was founded in 2012 and is headquartered in Tampa, Florida.
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