Arthur J. Gallagher & Co. (NYSE:AJG – Get Free Report) and Roadzen (NASDAQ:RDZN – Get Free Report) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, risk, earnings, profitability, dividends, valuation and institutional ownership.
Analyst Ratings
This is a summary of current recommendations for Arthur J. Gallagher & Co. and Roadzen, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Arthur J. Gallagher & Co. | 3 | 7 | 4 | 0 | 2.07 |
| Roadzen | 0 | 0 | 2 | 0 | 3.00 |
Arthur J. Gallagher & Co. currently has a consensus target price of $289.14, suggesting a potential downside of 1.85%. Roadzen has a consensus target price of $5.00, suggesting a potential upside of 525.00%. Given Roadzen’s stronger consensus rating and higher possible upside, analysts plainly believe Roadzen is more favorable than Arthur J. Gallagher & Co..
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Arthur J. Gallagher & Co. | $10.07 billion | 6.42 | $969.50 million | $5.25 | 56.11 |
| Roadzen | $46.72 million | 1.17 | -$99.67 million | ($1.92) | -0.42 |
Arthur J. Gallagher & Co. has higher revenue and earnings than Roadzen. Roadzen is trading at a lower price-to-earnings ratio than Arthur J. Gallagher & Co., indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Arthur J. Gallagher & Co. and Roadzen’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Arthur J. Gallagher & Co. | 10.40% | 19.12% | 3.78% |
| Roadzen | -290.14% | -31,166.20% | -262.79% |
Risk and Volatility
Arthur J. Gallagher & Co. has a beta of 0.72, indicating that its stock price is 28% less volatile than the S&P 500. Comparatively, Roadzen has a beta of 0.66, indicating that its stock price is 34% less volatile than the S&P 500.
Insider and Institutional Ownership
85.5% of Arthur J. Gallagher & Co. shares are owned by institutional investors. Comparatively, 24.7% of Roadzen shares are owned by institutional investors. 1.6% of Arthur J. Gallagher & Co. shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Summary
Arthur J. Gallagher & Co. beats Roadzen on 11 of the 13 factors compared between the two stocks.
About Arthur J. Gallagher & Co.
Arthur J. Gallagher & Co., together with its subsidiaries, provides insurance and reinsurance brokerage, consulting, and third-party property/casualty claims settlement and administration services to entities and individuals worldwide. It operates in Brokerage and Risk Management segments. The Brokerage segment offers retail and wholesale insurance and reinsurance brokerage services; assists retail brokers and other non-affiliated brokers in the placement of specialized and hard-to-place insurance; and acts as a brokerage wholesaler, managing general agent, and managing general underwriter for distributing specialized insurance coverages to underwriting enterprises. This segment performs activities, including marketing, underwriting, issuing policies, collecting premiums, appointing and supervising other agents, paying claims, and negotiating reinsurance; and offers services in the areas of insurance and reinsurance placement, risk of loss management, and management of employer sponsored benefit programs. The Risk Management segment provides contract claim settlement and administration services; and claims management, loss control consulting, and insurance property appraisal services. The company offers its services through a network of correspondent brokers and consultants. It serves commercial, industrial, public, religious, and nonprofit entities, as well as underwriting enterprises. Arthur J. Gallagher & Co. was founded in 1927 and is headquartered in Rolling Meadows, 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.
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