Comparing Roadzen (NASDAQ:RDZN) and Skyward Specialty Insurance Group (NASDAQ:SKWD)

Skyward Specialty Insurance Group (NASDAQ:SKWD) and Roadzen (NASDAQ:RDZN) are both small-cap finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, institutional ownership, profitability, analyst recommendations, earnings, dividends and risk.

Insider and Institutional Ownership

94.8% of Skyward Specialty Insurance Group shares are owned by institutional investors. Comparatively, 24.7% of Roadzen shares are owned by institutional investors. 7.9% of Skyward Specialty Insurance Group shares are owned by company insiders. Comparatively, 29.5% of Roadzen shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Skyward Specialty Insurance Group and Roadzen’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Skyward Specialty Insurance Group	12.00%	17.98%	3.77%
Roadzen	-30.61%	N/A	-40.70%

Earnings & Valuation

This table compares Skyward Specialty Insurance Group and Roadzen”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Skyward Specialty Insurance Group	$1.42 billion	1.37	$170.03 million	$4.07	10.74
Roadzen	$44.30 million	1.93	-$72.87 million	($0.20)	-5.35

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

Analyst Recommendations

This is a summary of current ratings and price targets for Skyward Specialty Insurance Group and Roadzen, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Skyward Specialty Insurance Group	0	4	6	2	2.83
Roadzen	1	0	0	0	1.00

Skyward Specialty Insurance Group presently has a consensus target price of $65.80, indicating a potential upside of 50.47%. Given Skyward Specialty Insurance Group’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Skyward Specialty Insurance Group is more favorable than Roadzen.

Volatility and Risk

Skyward Specialty Insurance Group has a beta of 0.54, indicating that its share price is 46% less volatile than the S&P 500. Comparatively, Roadzen has a beta of 0.46, indicating that its share price is 54% less volatile than the S&P 500.

Summary

Skyward Specialty Insurance Group beats Roadzen on 13 of the 15 factors compared between the two stocks.

About Skyward Specialty Insurance Group

Skyward Specialty Insurance Group, Inc., an insurance holding company, underwrites commercial property and casualty insurance products in the United States. It offers general liability, excess liability, professional liability, commercial auto, group accident and health, property, surety, and workers' compensation insurance products. Skyward Specialty Insurance Group, Inc. was incorporated in 2006 and is headquartered in Houston, Texas.

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.