Financial Analysis: Roadzen (NASDAQ:RDZN) versus Waterdrop (NYSE:WDH)

Waterdrop (NYSE:WDHGet Free Report) and Roadzen (NASDAQ:RDZNGet Free Report) are both small-cap business services companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, valuation, dividends, analyst recommendations, earnings, profitability and risk.

Analyst Ratings

This is a breakdown of current recommendations for Waterdrop and Roadzen, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Waterdrop 0 0 1 0 3.00
Roadzen 0 0 1 0 3.00

Waterdrop presently has a consensus price target of $2.80, suggesting a potential upside of 139.32%. Roadzen has a consensus price target of $10.00, suggesting a potential upside of 400.00%. Given Roadzen’s higher possible upside, analysts plainly believe Roadzen is more favorable than Waterdrop.

Profitability

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

Net Margins Return on Equity Return on Assets
Waterdrop 7.28% 4.21% 3.19%
Roadzen N/A N/A N/A

Risk and Volatility

Waterdrop has a beta of -0.23, indicating that its stock price is 123% less volatile than the S&P 500. Comparatively, Roadzen has a beta of 0.71, indicating that its stock price is 29% less volatile than the S&P 500.

Institutional and Insider Ownership

2.0% of Waterdrop shares are owned by institutional investors. Comparatively, 24.7% of Roadzen shares are owned by institutional investors. 24.6% of Waterdrop shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Waterdrop $370.53 million 1.17 $23.06 million $0.06 19.50
Roadzen N/A N/A N/A N/A N/A

Waterdrop has higher revenue and earnings than Roadzen.

Summary

Waterdrop beats Roadzen on 5 of the 8 factors compared between the two stocks.

About Waterdrop

(Get Free Report)

Waterdrop Inc., through its subsidiaries, provides online insurance brokerage services to match and connect users with related insurance products underwritten by insurance companies in the People's Republic of China. The company offers short-term health and long-term health and life insurance products and services. It also operates a medical crowdfunding platform. Waterdrop Inc. was founded in 2016 and is headquartered in Beijing, the People's Republic of China.

About Roadzen

(Get Free Report)

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.

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