Mercury General (NYSE:MCY) versus Roadzen (NASDAQ:RDZN) Head-To-Head Analysis

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

Analyst Ratings

This is a breakdown of current ratings and target prices for Roadzen and Mercury General, as reported by MarketBeat.com.

	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 price target of $100.00, indicating a potential upside of 6.76%. Given Mercury General’s stronger consensus rating and higher possible upside, analysts plainly believe Mercury General is more favorable than Roadzen.

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%

Risk and Volatility

Roadzen has a beta of 0.41, meaning that its stock price is 59% less volatile than the S&P 500. Comparatively, Mercury General has a beta of 0.94, meaning that its stock price is 6% less volatile than the S&P 500.

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 company insiders. Comparatively, 35.5% of Mercury General shares are held by company 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.

Valuation and Earnings

This table compares Roadzen and Mercury General”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Roadzen	$44.30 million	2.72	-$72.87 million	($0.12)	-12.67
Mercury General	$5.48 billion	0.95	$467.95 million	$7.93	11.81

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.

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.