Head to Head Comparison: Roadzen (NASDAQ:RDZN) vs. Bowhead Specialty (NYSE:BOW)

Roadzen (NASDAQ:RDZN) and Bowhead Specialty (NYSE:BOW) are both small-cap finance companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, profitability, risk, dividends, earnings and valuation.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Roadzen	-18.25%	N/A	-25.39%
Bowhead Specialty	10.12%	13.53%	2.91%

Analyst Recommendations

This is a summary of recent ratings and target prices for Roadzen and Bowhead Specialty, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Roadzen	1	0	0	0	1.00
Bowhead Specialty	0	4	4	0	2.50

Bowhead Specialty has a consensus target price of $35.40, suggesting a potential upside of 27.04%. Given Bowhead Specialty’s stronger consensus rating and higher probable upside, analysts plainly believe Bowhead Specialty is more favorable than Roadzen.

Institutional and Insider Ownership

24.7% of Roadzen shares are owned by institutional investors. 26.8% of Roadzen shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Volatility and Risk

Roadzen has a beta of 0.46, suggesting that its share price is 54% less volatile than the S&P 500. Comparatively, Bowhead Specialty has a beta of -0.93, suggesting that its share price is 193% less volatile than the S&P 500.

Earnings and Valuation

This table compares Roadzen and Bowhead Specialty”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Roadzen	$44.30 million	2.37	-$72.87 million	($0.12)	-11.50
Bowhead Specialty	$425.66 million	2.15	$38.24 million	$1.56	17.86

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

Summary

Bowhead Specialty beats Roadzen on 10 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 Bowhead Specialty

Bowhead Specialty Holdings Inc. provides specialty property and casualty insurance products in the United States. It underwrites casualty insurance solutions for risks in the construction, distribution, heavy manufacturing, real estate, and hospitality segments; professional liability insurance solutions for financial institutions, private and public directors and officers liability insurance, errors and omissions liability insurance, and cyber segments; and healthcare solutions for hospitals, senior care providers, managed care organizations, miscellaneous medical facilities, and healthcare management liability segments. The company distributes its products through distribution partners in wholesale and retail markets. Bowhead Specialty Holdings Inc. was formerly known as Bowhead Holdings Inc. and changed its name to Bowhead Specialty Holdings Inc. in March 2024. The company was founded in 2020 and is based in New York, New York. Bowhead Specialty Holdings Inc. operates as a subsidiary of Bowhead Insurance Holdings LP.