Contrasting Ryan Specialty (NYSE:RYAN) & Roadzen (NASDAQ:RDZN)

Roadzen (NASDAQ:RDZN) and Ryan Specialty (NYSE:RYAN) are both finance companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, analyst recommendations, valuation, institutional ownership, dividends, profitability and risk.

Valuation and Earnings

This table compares Roadzen and Ryan Specialty”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Roadzen	$50.04 million	1.35	-$99.67 million	($3.00)	-0.33
Ryan Specialty	$2.08 billion	8.81	$61.04 million	$0.64	109.38

Ryan Specialty has higher revenue and earnings than Roadzen. Roadzen is trading at a lower price-to-earnings ratio than Ryan Specialty, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

24.7% of Roadzen shares are held by institutional investors. Comparatively, 84.8% of Ryan Specialty shares are held by institutional investors. 11.1% of Ryan Specialty shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Roadzen and Ryan Specialty’s 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%
Ryan Specialty	10.21%	48.08%	6.57%

Analyst Recommendations

This is a breakdown of recent ratings for Roadzen and Ryan Specialty, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Roadzen	0	0	2	0	3.00
Ryan Specialty	1	5	5	0	2.36

Roadzen presently has a consensus target price of $8.00, indicating a potential upside of 710.70%. Ryan Specialty has a consensus target price of $70.33, indicating a potential upside of 0.48%. Given Roadzen’s stronger consensus rating and higher possible upside, research analysts plainly believe Roadzen is more favorable than Ryan Specialty.

Volatility & Risk

Roadzen has a beta of 0.63, indicating that its stock price is 37% less volatile than the S&P 500. Comparatively, Ryan Specialty has a beta of 0.62, indicating that its stock price is 38% less volatile than the S&P 500.

Summary

Ryan Specialty beats Roadzen on 11 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 Ryan Specialty

Ryan Specialty Holdings, Inc. operates as a service provider of specialty products and solutions for insurance brokers, agents, and carriers in the United States, Canada, the United Kingdom, Europe, and Singapore. It offers distribution, underwriting, product development, administration, and risk management services by acting as a wholesale broker and a managing underwriter. The company serves commercial, industrial, institutional, and government sectors. Ryan Specialty Holdings, Inc. was founded in 2010 and is headquartered in Chicago, Illinois.