Critical Contrast: Roadzen (NASDAQ:RDZN) vs. GoHealth (NASDAQ:GOCO)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
GoHealth	-4.32%	-17.17%	-4.58%
Roadzen	-290.14%	N/A	-262.79%

Insider and Institutional Ownership

24.2% of GoHealth shares are held by institutional investors. Comparatively, 24.7% of Roadzen shares are held by institutional investors. 35.0% of GoHealth shares are held 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.

Risk and Volatility

GoHealth has a beta of 1.64, suggesting that its stock price is 64% more volatile than the S&P 500. Comparatively, Roadzen has a beta of 0.28, suggesting that its stock price is 72% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for GoHealth and Roadzen, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GoHealth	0	1	0	0	2.00
Roadzen	0	0	2	0	3.00

GoHealth presently has a consensus target price of $13.00, indicating a potential downside of 22.30%. Roadzen has a consensus target price of $5.00, indicating a potential upside of 212.50%. Given Roadzen’s stronger consensus rating and higher probable upside, analysts plainly believe Roadzen is more favorable than GoHealth.

Valuation & Earnings

This table compares GoHealth and Roadzen”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GoHealth	$734.67 million	0.52	-$63.26 million	($3.50)	-4.78
Roadzen	$46.72 million	2.54	-$99.67 million	($1.92)	-0.83

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

Summary

Roadzen beats GoHealth on 8 of the 14 factors compared between the two stocks.

About GoHealth

GoHealth, Inc. operates as a health insurance marketplace and Medicare-focused digital health company in the United States. The company operates a technology platform that leverages machine-learning algorithms of insurance behavioral data to optimize the process for helping individuals find the health insurance plan for their specific needs. It provides Medicare plans, including Medicare Advantage, Medicare Supplement and Prescription Drug, and Medicare Special Needs Plans. The company also offers partner marketing services. It sells its products through carriers and online platform, as well as independent and external agencies. The company was founded in 2001 and is headquartered in Chicago, Illinois.

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.