Analyzing Roadzen (NASDAQ:RDZN) and UMC (OTCMKTS:UMCN)

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

Insider and Institutional Ownership

24.7% of Roadzen shares are held by institutional investors. 16.8% of UMC shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Volatility & Risk

Roadzen has a beta of 0.69, indicating that its stock price is 31% less volatile than the S&P 500. Comparatively, UMC has a beta of 21.99, indicating that its stock price is 2,099% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings for Roadzen and UMC, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Roadzen	0	0	1	0	3.00
UMC	0	0	0	0	N/A

Roadzen presently has a consensus price target of $10.00, indicating a potential upside of 651.88%. Given Roadzen’s higher probable upside, equities research analysts clearly believe Roadzen is more favorable than UMC.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Roadzen	-287.82%	-31,166.20%	-221.81%
UMC	N/A	N/A	N/A

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Roadzen	$46.72 million	1.95	-$99.67 million	N/A	N/A
UMC	N/A	N/A	N/A	N/A	N/A

UMC has lower revenue, but higher earnings than Roadzen.

Summary

UMC beats Roadzen on 5 of the 9 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 UMC

UMC, Inc. provides medical insurance claims coding and processing, electronic medical records storage, chargemaster review, pricing comparison, and accounts receivable management services to healthcare providers. Its customers primarily include hospitals, medical clinics, and physician practitioners in the United States. The company was formerly known as United Medicorp, Inc. and changed its name to UMC, Inc. in May 2007. UMC, Inc. was incorporated in 1989 and is based in Pampa, Texas.