Contrasting Skyward Specialty Insurance Group (NASDAQ:SKWD) & Roadzen (NASDAQ:RDZN)

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

Insider and Institutional Ownership

24.7% of Roadzen shares are owned by institutional investors. Comparatively, 94.8% of Skyward Specialty Insurance Group shares are owned by institutional investors. 29.5% of Roadzen shares are owned by company insiders. Comparatively, 8.0% of Skyward Specialty Insurance Group shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Risk & Volatility

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

Profitability

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

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

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Roadzen and Skyward Specialty Insurance Group, as reported by MarketBeat.

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

Skyward Specialty Insurance Group has a consensus target price of $65.80, indicating a potential upside of 56.18%. Given Skyward Specialty Insurance Group’s stronger consensus rating and higher possible upside, analysts clearly believe Skyward Specialty Insurance Group is more favorable than Roadzen.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Roadzen	$44.30 million	1.93	-$72.87 million	($0.20)	-5.35
Skyward Specialty Insurance Group	$1.42 billion	1.32	$170.03 million	$4.07	10.35

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.

Summary

Skyward Specialty Insurance Group beats Roadzen on 13 of the 15 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 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.