Roadzen (NASDAQ:RDZN – Get Free Report) and Mercury General (NYSE:MCY – Get Free Report) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, analyst recommendations, valuation, institutional ownership, risk, earnings and dividends.
Profitability
This table compares Roadzen and Mercury General’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Roadzen | -18.25% | N/A | -25.39% |
| Mercury General | 7.55% | 19.53% | 4.35% |
Earnings & Valuation
This table compares Roadzen and Mercury General”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Roadzen | $44.30 million | 3.20 | -$72.87 million | ($0.12) | -14.92 |
| Mercury General | $5.82 billion | 0.83 | $467.95 million | $7.93 | 11.00 |
Mercury General has higher revenue and earnings than Roadzen. Roadzen is trading at a lower price-to-earnings ratio than Mercury General, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
24.7% of Roadzen shares are held by institutional investors. Comparatively, 42.4% of Mercury General shares are held by institutional investors. 26.8% of Roadzen shares are held by insiders. Comparatively, 35.5% of Mercury General shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Analyst Recommendations
This is a summary of recent ratings and recommmendations for Roadzen and Mercury General, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Roadzen | 1 | 0 | 0 | 0 | 1.00 |
| Mercury General | 0 | 1 | 1 | 1 | 3.00 |
Mercury General has a consensus target price of $100.00, suggesting a potential upside of 14.65%. Given Mercury General’s stronger consensus rating and higher probable upside, analysts clearly believe Mercury General is more favorable than Roadzen.
Volatility & Risk
Roadzen has a beta of 0.41, suggesting that its share price is 59% less volatile than the S&P 500. Comparatively, Mercury General has a beta of 0.93, suggesting that its share price is 7% less volatile than the S&P 500.
Summary
Mercury General beats Roadzen on 14 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 Mercury General
Mercury General Corporation, together with its subsidiaries, engages in writing personal automobile insurance in the United States. The company also writes homeowners, commercial automobile, commercial property, mechanical protection, and umbrella insurance products. Its automobile insurance products include collision, property damage, bodily injury, comprehensive, personal injury protection, underinsured and uninsured motorist, and other hazards; and homeowners insurance products comprise dwelling, liability, personal property, and other coverages. The company sells its policies through a network of independent agents, insurance agencies, as well as directly through internet sales portals in Arizona, California, Florida, Georgia, Illinois, Nevada, New Jersey, New York, Oklahoma, Texas, and Virginia. Mercury General Corporation was founded in 1961 and is headquartered in Los Angeles, California.
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