Huize (NASDAQ:HUIZ) & Roadzen (NASDAQ:RDZN) Head-To-Head Review

Roadzen (NASDAQ:RDZN) and Huize (NASDAQ:HUIZ) are both small-cap finance companies, but which is the better investment? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, dividends, valuation and analyst recommendations.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Roadzen	-290.14%	N/A	-262.79%
Huize	1.75%	5.07%	2.16%

Institutional and Insider Ownership

24.7% of Roadzen shares are owned by institutional investors. 30.4% of Huize shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings for Roadzen and Huize, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Roadzen	0	0	2	0	3.00
Huize	0	0	0	0	0.00

Roadzen presently has a consensus price target of $5.00, indicating a potential upside of 300.00%. Given Roadzen’s stronger consensus rating and higher probable upside, research analysts plainly believe Roadzen is more favorable than Huize.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Roadzen	$46.45 million	2.00	-$99.67 million	($1.92)	-0.65
Huize	$1.20 billion	0.03	$9.89 million	$0.09	34.54

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

Volatility and Risk

Roadzen has a beta of 0.21, meaning that its stock price is 79% less volatile than the S&P 500. Comparatively, Huize has a beta of 0.49, meaning that its stock price is 51% less volatile than the S&P 500.

Summary

Huize beats Roadzen on 9 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 Huize

Huize Holding Limited, together with its subsidiaries, offers online insurance product and service platform through various internet channels in the People's Republic of China. The company provides life and health insurance products, such as critical illness, illness and disease, annuity, and term and whole life insurance products; and property and casualty insurance products, including travel, individual casualty, and corporate liability insurance products. It also offers offline insurance intermediary and brokerage services. The company also provides digital and technology development services; investment, technology development, internet information, management, and financial consulting services; business management and catering services; and insurance agency services. Huize Holding Limited was founded in 2006 and is headquartered in Shenzhen, China.