Head-To-Head Analysis: HCI Group (NYSE:HCI) and Roadzen (NASDAQ:RDZN)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
HCI Group	33.19%	36.34%	12.54%
Roadzen	-30.61%	N/A	-40.70%

Volatility and Risk

HCI Group has a beta of 1.16, indicating that its stock price is 16% more volatile than the S&P 500. Comparatively, Roadzen has a beta of 0.51, indicating that its stock price is 49% less volatile than the S&P 500.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
HCI Group	$900.95 million	2.24	$299.01 million	$22.68	6.84
Roadzen	$44.30 million	2.16	-$72.87 million	($0.20)	-6.00

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

Analyst Ratings

This is a breakdown of current recommendations for HCI Group and Roadzen, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
HCI Group	0	1	5	1	3.00
Roadzen	1	0	0	0	1.00

HCI Group presently has a consensus price target of $231.67, indicating a potential upside of 49.27%. Given HCI Group’s stronger consensus rating and higher probable upside, research analysts clearly believe HCI Group is more favorable than Roadzen.

Institutional and Insider Ownership

87.0% of HCI Group shares are held by institutional investors. Comparatively, 24.7% of Roadzen shares are held by institutional investors. 21.9% of HCI Group shares are held by company insiders. Comparatively, 29.5% 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 will outperform the market over the long term.

Summary

HCI Group beats Roadzen on 14 of the 15 factors compared between the two stocks.

About HCI Group

HCI Group, Inc., together with its subsidiaries, engages in the property and casualty insurance, insurance management, reinsurance, real estate, and information technology businesses in Florida. It provides residential insurance products, such as homeowners, fire, flood, and wind-only insurance to homeowners, condominium owners, and tenants for properties, as well as offers reinsurance programs. The company also owns and operates waterfront properties and retail shopping centers, and an office building, as well as commercial properties for investment purposes. In addition, it designs and develops web-based applications and products for mobile devices, including SAMS, an online policy administration platform; Harmony, a policy administration platform; ClaimColony, an end-to-end claims management platform; and AtlasViewer, a mapping and data visualization platform. The company was formerly known as Homeowners Choice, Inc. and changed its name to HCI Group, Inc. in May 2013. HCI Group, Inc. was incorporated in 2006 and is headquartered in Tampa, Florida.

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.