Financial Comparison: Lightspeed Commerce (NYSE:LSPD) vs. Roadzen (NASDAQ:RDZN)

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

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lightspeed Commerce	$1.23 billion	1.19	-$144.41 million	($0.70)	-15.09
Roadzen	$55.02 million	1.59	-$22.52 million	($0.36)	-2.86

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

Institutional & Insider Ownership

68.7% of Lightspeed Commerce shares are owned by institutional investors. Comparatively, 24.7% of Roadzen shares are owned by institutional investors. 29.5% of Roadzen shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Lightspeed Commerce and Roadzen, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lightspeed Commerce	3	9	4	0	2.06
Roadzen	1	1	0	0	1.50

Lightspeed Commerce presently has a consensus target price of $11.27, suggesting a potential upside of 6.67%. Given Lightspeed Commerce’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Lightspeed Commerce is more favorable than Roadzen.

Volatility and Risk

Lightspeed Commerce has a beta of 1.84, indicating that its stock price is 84% more volatile than the S&P 500. Comparatively, Roadzen has a beta of 1.25, indicating that its stock price is 25% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Lightspeed Commerce	-7.81%	1.06%	0.95%
Roadzen	-46.90%	N/A	-45.21%

Summary

Lightspeed Commerce beats Roadzen on 9 of the 13 factors compared between the two stocks.

About Lightspeed Commerce

Lightspeed Commerce Inc. engages in sale of cloud-based software subscriptions and payments solutions for small and midsize businesses, retailers, restaurants, and golf course operators in North America, Europe, the United Kingdom, Australia, New Zealand, and internationally. Its Software as a Service platform enables customers to engage with consumers, manage operations, accept payments, etc. The company's cloud platforms are designed interrelated elements, such as omni-channel consumer experience, a comprehensive back-office operations management suite to improve customers' efficiency and insight, and the facilitation of payments. Its platform functionalities include full omni-channel capabilities, point of sale (POS), product and menu management, employee and inventory management, analytics and reporting, multi-location connectivity, order-ahead and curbside pickup functionality, loyalty, and customer management solutions. The company also offers tailored financial solutions, such as Lightspeed Retail, Lightspeed eCommerce, Lightspeed Restaurant, and Lightspeed B2B solutions. In addition, it sells hardware, including tablets, customer facing displays, receipt printers, networking hardware, cash drawers, payment terminals, servers, stands, bar-code scanners, and an assortment of accessories, as well as provides installation and implementation services. The company was formerly known as Lightspeed POS Inc. and changed its name to Lightspeed Commerce Inc. in August 2021. Lightspeed Commerce Inc. was incorporated in 2005 and is headquartered in Montreal, Canada.

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.