Head-To-Head Comparison: Roadzen (NASDAQ:RDZN) versus Travelers Companies (NYSE:TRV)

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

Institutional & Insider Ownership

24.7% of Roadzen shares are held by institutional investors. Comparatively, 82.4% of Travelers Companies shares are held by institutional investors. 26.8% of Roadzen shares are held by insiders. Comparatively, 1.5% of Travelers Companies shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Roadzen	$44.30 million	2.09	-$72.87 million	($1.51)	-0.81
Travelers Companies	$47.84 billion	1.27	$5.00 billion	$22.61	11.94

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

Analyst Ratings

This is a breakdown of recent ratings and price targets for Roadzen and Travelers Companies, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Roadzen	1	0	2	0	2.33
Travelers Companies	2	11	7	1	2.33

Roadzen currently has a consensus price target of $5.00, indicating a potential upside of 309.84%. Travelers Companies has a consensus price target of $290.11, indicating a potential upside of 7.48%. Given Roadzen’s higher probable upside, equities analysts clearly believe Roadzen is more favorable than Travelers Companies.

Risk and Volatility

Roadzen has a beta of 0.34, suggesting that its stock price is 66% less volatile than the S&P 500. Comparatively, Travelers Companies has a beta of 0.51, suggesting that its stock price is 49% less volatile than the S&P 500.

Profitability

This table compares Roadzen and Travelers Companies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Roadzen	-61.58%	N/A	-90.09%
Travelers Companies	10.97%	18.68%	3.90%

Summary

Travelers Companies 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 Travelers Companies

The Travelers Companies, Inc., through its subsidiaries, provides a range of commercial and personal property, and casualty insurance products and services to businesses, government units, associations, and individuals in the United States and internationally. The company operates through three segments: Business Insurance, Bond & Specialty Insurance, and Personal Insurance. The Business Insurance segment offers workers’ compensation, commercial automobile and property, general liability, commercial multi-peril, employers’ liability, public and product liability, professional indemnity, marine, aviation, onshore and offshore energy, construction, terrorism, personal accident, and kidnap and ransom insurance products. This segment operates through select accounts, which serve small businesses; commercial accounts that serve mid-sized businesses; national accounts, which serve large companies; and national property and other that serve large and mid-sized customers, commercial trucking industry, and agricultural businesses, as well as markets and distributes its products through brokers, wholesale agents, and program managers. The Bond & Specialty Insurance segment provides surety, fidelity, management and professional liability, and other property and casualty coverages and related risk management services through independent agencies and brokers. The Personal Insurance segment offers property and casualty insurance covering personal risks, primarily automobile and homeowners’ insurance to individuals through independent agencies and brokers. The Travelers Companies, Inc. was founded in 1853 and is based in New York, New York.