Roadzen (NASDAQ:RDZN – Get Free Report) and SmartRent (NYSE:SMRT – Get Free Report) are both small-cap technology companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, earnings, valuation, institutional ownership, risk, analyst recommendations and profitability.
Institutional & Insider Ownership
24.7% of Roadzen shares are owned by institutional investors. Comparatively, 59.4% of SmartRent shares are owned by institutional investors. 29.5% of Roadzen shares are owned by company insiders. Comparatively, 2.3% of SmartRent shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Analyst Ratings
This is a breakdown of recent ratings for Roadzen and SmartRent, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Roadzen | 1 | 1 | 0 | 0 | 1.50 |
| SmartRent | 1 | 2 | 1 | 0 | 2.00 |
SmartRent has a consensus price target of $1.48, suggesting a potential upside of 19.43%. Given SmartRent’s stronger consensus rating and higher probable upside, analysts clearly believe SmartRent is more favorable than Roadzen.
Profitability
This table compares Roadzen and SmartRent’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Roadzen | -46.90% | N/A | -45.21% |
| SmartRent | -12.97% | -8.50% | -6.27% |
Valuation & Earnings
This table compares Roadzen and SmartRent”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Roadzen | $55.02 million | 1.75 | -$22.52 million | ($0.36) | -3.14 |
| SmartRent | $152.33 million | 1.55 | -$60.56 million | ($0.10) | -12.35 |
Roadzen has higher earnings, but lower revenue than SmartRent. SmartRent is trading at a lower price-to-earnings ratio than Roadzen, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Roadzen has a beta of 1.25, meaning that its share price is 25% more volatile than the S&P 500. Comparatively, SmartRent has a beta of 1.64, meaning that its share price is 64% more volatile than the S&P 500.
Summary
SmartRent beats Roadzen on 9 of the 13 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 SmartRent
SmartRent, Inc., an enterprise software company, provides an integrated smart home operating system to residential property owners and operators, homebuilders, institutional home buyers, developers, and residents in the United States. The company’s products and solutions include smart apartments and homes, access control for buildings, common areas, and rental units, asset protection and monitoring, parking management, self-guided tours, and community and resident Wi-Fi. It also offers professional services to customers, which include training, installation, and support services. The company was founded in 2017 and is headquartered in Scottsdale, Arizona.
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