Head to Head Analysis: Progressive (NYSE:PGR) versus Roadzen (NASDAQ:RDZN)

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

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Roadzen and Progressive, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Roadzen	1	0	0	0	1.00
Progressive	2	11	6	1	2.30

Progressive has a consensus target price of $266.52, suggesting a potential upside of 17.42%. Given Progressive’s stronger consensus rating and higher probable upside, analysts clearly believe Progressive is more favorable than Roadzen.

Profitability

This table compares Roadzen and Progressive’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%
Progressive	12.57%	33.88%	9.15%

Volatility & Risk

Roadzen has a beta of 0.46, suggesting that its share price is 54% less volatile than the S&P 500. Comparatively, Progressive has a beta of 0.29, suggesting that its share price is 71% less volatile than the S&P 500.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Roadzen	$48.04 million	2.36	-$72.87 million	($0.12)	-12.42
Progressive	$85.17 billion	1.56	$8.48 billion	$18.23	12.45

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

Institutional and Insider Ownership

24.7% of Roadzen shares are held by institutional investors. Comparatively, 85.3% of Progressive shares are held by institutional investors. 26.8% of Roadzen shares are held by insiders. Comparatively, 0.3% of Progressive shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Progressive beats Roadzen on 12 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 Progressive

The Progressive Corporation, an insurance holding company, provides personal and commercial auto, personal residential and commercial property, business related general liability, and other specialty property-casualty insurance products and related services in the United States. It operates in three segments: Personal Lines, Commercial Lines, and Property. The Personal Lines segment writes insurance for personal autos and recreational vehicles (RV). This segment's products include personal auto insurance; and special lines products, including insurance for motorcycles, ATVs, RVs, watercrafts, snowmobiles, and related products. The Commercial Lines segment provides auto-related liability and physical damage insurance, and business-related general liability and property insurance for autos, vans, and pick-up trucks used by small businesses, as well as non-fleet taxis, black-car services, and airport taxis; tractors, trailers, and straight trucks primarily used by regional general freight and expeditor-type businesses, and long-haul operators; dump trucks used by light contractors and heavy constructions; log trucks and garbage trucks used by dirt, sand and gravel, logging, garbage/debris removal, and coal-type businesses; and tow trucks and wreckers used in towing services and gas/service station businesses. The Property segment writes residential property insurance for homeowners, other property owners, and renters, as well as offers manufactured homes, personal umbrella insurance, and primary and excess flood insurance. The company offers policy issuance and claims adjusting services; acts as an agent to homeowners, general liability, workers' compensation insurance, and other products; and reinsurance services. It sells its products through independent insurance agencies, as well as through mobile applications and over the phone. The Progressive Corporation was founded in 1937 and is headquartered in Mayfield Village, Ohio.