GoHealth (NASDAQ:GOCO – Get Free Report) and Roadzen (NASDAQ:RDZN – Get Free Report) are both small-cap finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, risk, earnings, dividends, valuation, profitability and analyst recommendations.
Analyst Recommendations
This is a summary of current ratings and recommmendations for GoHealth and Roadzen, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| GoHealth | 0 | 1 | 0 | 0 | 2.00 |
| Roadzen | 0 | 0 | 2 | 0 | 3.00 |
GoHealth presently has a consensus target price of $13.00, suggesting a potential downside of 13.68%. Roadzen has a consensus target price of $5.00, suggesting a potential upside of 190.70%. Given Roadzen’s stronger consensus rating and higher possible upside, analysts clearly believe Roadzen is more favorable than GoHealth.
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| GoHealth | $686.46 million | 0.50 | -$63.26 million | ($3.50) | -4.30 |
| Roadzen | $46.45 million | 2.75 | -$99.67 million | ($1.92) | -0.90 |
GoHealth has higher revenue and earnings than Roadzen. GoHealth is trading at a lower price-to-earnings ratio than Roadzen, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
24.2% of GoHealth shares are held by institutional investors. Comparatively, 24.7% of Roadzen shares are held by institutional investors. 35.0% of GoHealth shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Profitability
This table compares GoHealth and Roadzen’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| GoHealth | -4.32% | -17.17% | -4.58% |
| Roadzen | -290.14% | N/A | -262.79% |
Volatility and Risk
GoHealth has a beta of 1.64, indicating that its share price is 64% more volatile than the S&P 500. Comparatively, Roadzen has a beta of 0.28, indicating that its share price is 72% less volatile than the S&P 500.
Summary
Roadzen beats GoHealth on 8 of the 14 factors compared between the two stocks.
About GoHealth
GoHealth, Inc. operates as a health insurance marketplace and Medicare-focused digital health company in the United States. The company operates a technology platform that leverages machine-learning algorithms of insurance behavioral data to optimize the process for helping individuals find the health insurance plan for their specific needs. It provides Medicare plans, including Medicare Advantage, Medicare Supplement and Prescription Drug, and Medicare Special Needs Plans. The company also offers partner marketing services. It sells its products through carriers and online platform, as well as independent and external agencies. The company was founded in 2001 and is headquartered in Chicago, 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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