RLI (NYSE:RLI – Get Free Report) and Roadzen (NASDAQ:RDZN – Get Free Report) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their risk, profitability, dividends, institutional ownership, valuation, earnings and analyst recommendations.
Profitability
This table compares RLI and Roadzen’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| RLI | 19.02% | 16.51% | 4.71% |
| Roadzen | -18.25% | N/A | -25.39% |
Insider & Institutional Ownership
77.9% of RLI shares are held by institutional investors. Comparatively, 24.7% of Roadzen shares are held by institutional investors. 2.2% of RLI shares are held by company insiders. Comparatively, 26.8% of Roadzen shares are held 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
Analyst Recommendations
This is a breakdown of recent ratings and price targets for RLI and Roadzen, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| RLI | 1 | 5 | 1 | 0 | 2.00 |
| Roadzen | 1 | 0 | 0 | 0 | 1.00 |
RLI presently has a consensus target price of $72.80, indicating a potential upside of 13.12%. Given RLI’s stronger consensus rating and higher possible upside, equities analysts clearly believe RLI is more favorable than Roadzen.
Valuation and Earnings
This table compares RLI and Roadzen”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| RLI | $1.86 billion | 3.18 | $345.78 million | $3.81 | 16.89 |
| Roadzen | $44.30 million | 3.06 | -$72.87 million | ($0.12) | -14.25 |
RLI has higher revenue and earnings than Roadzen. Roadzen is trading at a lower price-to-earnings ratio than RLI, indicating that it is currently the more affordable of the two stocks.
Summary
RLI beats Roadzen on 13 of the 14 factors compared between the two stocks.
About RLI
RLI Corp., an insurance holding company, underwrites property and casualty insurance. Its Casualty segment provides commercial and personal coverage products; and general liability products, such as coverage for third-party liability of commercial insureds, including manufacturers, contractors, apartments, and mercantile. It also offers coverages for security guards and environmental liability for underground storage tanks, contractors and asbestos, and environmental remediation specialists; and professional liability coverages for errors and omission coverage for small to medium-sized design, technical, computer, and miscellaneous professionals. This segment provides commercial automobile liability and physical damage insurance to local, intermediate and long haul truckers, public transportation entities, and other types of specialty commercial automobile risks; incidental and related insurance coverages; inland marine coverages; management liability coverages, such as directors and officers liability insurance, fiduciary liability and coverages, employment practice liability, and for various classes of risks, including public and private businesses; and home business insurance products. The company's Property segment offers commercial property, cargo, hull, protection and indemnity, marine liability, inland marine, homeowners' and dwelling fire, and other property insurance products. Its Surety segment offers commercial surety bonds for medium to large-sized businesses; small bonds for businesses and individuals; and bonds for small to medium-sized contractors. The company also engages in various reinsurance coverages. It markets its products through branch offices, wholesale and retail brokers, carrier partners, and underwriting and independent agents. RLI Corp. was incorporated in 1965 and is headquartered in Peoria, Illinois.
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.
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