Financial Comparison: SelectQuote (NYSE:SLQT) & Roadzen (NASDAQ:RDZN)

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

Risk & Volatility

SelectQuote has a beta of 1.12, suggesting that its share price is 12% more volatile than the S&P 500. Comparatively, Roadzen has a beta of 0.71, suggesting that its share price is 29% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for SelectQuote and Roadzen, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SelectQuote	0	1	1	0	2.50
Roadzen	0	0	1	0	3.00

SelectQuote currently has a consensus target price of $4.00, suggesting a potential upside of 44.93%. Roadzen has a consensus target price of $10.00, suggesting a potential upside of 350.45%. Given Roadzen’s stronger consensus rating and higher probable upside, analysts clearly believe Roadzen is more favorable than SelectQuote.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
SelectQuote	-4.12%	-12.03%	-3.33%
Roadzen	N/A	N/A	N/A

Insider & Institutional Ownership

34.6% of SelectQuote shares are owned by institutional investors. Comparatively, 24.7% of Roadzen shares are owned by institutional investors. 10.4% of SelectQuote shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares SelectQuote and Roadzen’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SelectQuote	$1.00 billion	0.47	-$58.54 million	($0.32)	-8.63
Roadzen	N/A	N/A	N/A	N/A	N/A

Roadzen has lower revenue, but higher earnings than SelectQuote.

Summary

Roadzen beats SelectQuote on 5 of the 9 factors compared between the two stocks.

About SelectQuote

SelectQuote, Inc. operates a technology-enabled, direct-to-consumer distribution platform that sells a range of insurance products and healthcare services in the United States. The company operates through three segments: Senior; Life; and Auto & Home. It distributes senior health policies, such as medicare advantage, medicare supplement, medicare part D, and other ancillary senior health insurance related products, including prescription drugs, dental, vision, and hearing plans; life insurance products, such as term life, final expense, and other ancillary products, including critical illness, accidental death, and juvenile insurance; homeowners, auto, dwelling fire, and other ancillary insurance products; and non-commercial auto and home property, and casualty policies. The company also provides SelectRx, an accredited patient-centered pharmacy home pharmacy, which offers essential prescription medications, OTC medications, customized medication packaging, medication therapy management, and long-term pharmacy care; and population health that helps members understand the benefits available under their health plans, and contracts with insurance carriers. SelectQuote, Inc. was incorporated in 1999 and is headquartered in Overland Park, Kansas.

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.