Contrasting Roadzen (NASDAQ:RDZN) & PTC (NASDAQ:PTC)

PTC (NASDAQ:PTC) and Roadzen (NASDAQ:RDZN) are both technology companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, institutional ownership, risk, earnings, analyst recommendations, dividends and profitability.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
PTC	41.67%	25.31%	14.55%
Roadzen	-46.90%	N/A	-45.21%

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PTC	$2.74 billion	5.46	$734.00 million	$10.34	13.34
Roadzen	$55.02 million	2.03	-$22.52 million	($0.36)	-3.64

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

Analyst Ratings

This is a breakdown of recent ratings for PTC and Roadzen, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PTC	1	6	7	0	2.43
Roadzen	1	1	0	0	1.50

PTC currently has a consensus price target of $170.14, indicating a potential upside of 23.33%. Given PTC’s stronger consensus rating and higher probable upside, analysts plainly believe PTC is more favorable than Roadzen.

Volatility & Risk

PTC has a beta of 1, indicating that its share price has a similar volatility profile to the S&P 500.Comparatively, Roadzen has a beta of 1.24, indicating that its share price is 24% more volatile than the S&P 500.

Insider and Institutional Ownership

95.1% of PTC shares are held by institutional investors. Comparatively, 24.7% of Roadzen shares are held by institutional investors. 0.3% of PTC shares are held by company insiders. Comparatively, 29.5% of Roadzen shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

PTC beats Roadzen on 12 of the 14 factors compared between the two stocks.

About PTC

PTC Inc. operates as software company in the Americas, Europe, and the Asia Pacific. The company provides Windchill, a suite that manages all aspects of the product development lifecycle(PLM) that provides real-time information sharing, dynamic data visualization, collaborate across geographically distributed teams, and enabling manufacturers to elevate product development, manufacturing, and field service processes; ThingWorx, a platform for Industrial Internet of Things; ServiceMax, a field service management solutions enable companies to asset uptime with optimized in-person and remote service and technician productivity with mobile tools. and deliver metrics; and Arena, a SaaS PLM solution enables product teams to collaborate virtually to share product and quality information with internal teams and supply chain partners and deliver products to customers. It offers Codebeamer, an application lifecycle management for products and software development; Servigistics, a service parts management solution; and FlexPLM, a solution provides retailers with a single platform for merchandising and line planning, materials management, sampling, and others. In addition, it offers Kepware, a portfolio of industrial connectivity solutions helps companies connect diverse automation devices and software applications; Creo, a 3D CAD technology enables the digital design, testing, and modification of product models; and Onshape, a cloud product development platform that delivers computer-aided design with data management tools. Further, it offers Vuforia, an augmented reality (AR) technology enables the visualization of digital information in a physical context and the creation of AR enabling companies to drive results in manufacturing, service, engineering, and operations; and Arbortext, a dynamic publishing solution streamlines how organizations create, manage, and publish technical documentation. PTC Inc. was incorporated in 1985 and is headquartered in Boston, Massachusetts.

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.