SoundThinking (NASDAQ:SSTI – Get Free Report) and Roadzen (NASDAQ:RDZN – Get Free Report) are both small-cap technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, valuation, risk, dividends, analyst recommendations, institutional ownership and earnings.
Volatility and Risk
SoundThinking has a beta of 1.16, suggesting that its stock price is 16% more volatile than the S&P 500. Comparatively, Roadzen has a beta of 1.24, suggesting that its stock price is 24% more volatile than the S&P 500.
Insider & Institutional Ownership
60.7% of SoundThinking shares are held by institutional investors. Comparatively, 24.7% of Roadzen shares are held by institutional investors. 10.9% of SoundThinking shares are held by insiders. Comparatively, 29.5% of Roadzen shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| SoundThinking | $104.13 million | 0.76 | -$9.42 million | ($1.29) | -4.74 |
| Roadzen | $55.02 million | 2.00 | -$22.52 million | ($0.36) | -3.58 |
SoundThinking has higher revenue and earnings than Roadzen. SoundThinking is trading at a lower price-to-earnings ratio than Roadzen, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of current ratings and target prices for SoundThinking and Roadzen, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| SoundThinking | 1 | 5 | 1 | 0 | 2.00 |
| Roadzen | 1 | 1 | 0 | 0 | 1.50 |
SoundThinking presently has a consensus target price of $10.83, suggesting a potential upside of 77.30%. Given SoundThinking’s stronger consensus rating and higher probable upside, equities research analysts plainly believe SoundThinking is more favorable than Roadzen.
Profitability
This table compares SoundThinking and Roadzen’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| SoundThinking | -16.92% | -23.77% | -12.90% |
| Roadzen | -46.90% | N/A | -45.21% |
Summary
SoundThinking beats Roadzen on 8 of the 14 factors compared between the two stocks.
About SoundThinking
SoundThinking, Inc., a public safety technology company that provides transformative solutions and strategic advisory services for law enforcement and civic leadership. Its SafetySmart Platform, an integrated suite of data-driven tools that enable law enforcement and community violence prevention and health organizations to be efficient in public safety outcomes. It offers ShotSpotter, an acoustic gunshot detection system; CrimeTracer, a law enforcement search engine; CaseBuilder, an investigation management system; and ResourceRouter, a software that directs patrol and community anti-violence resources to help maximize their impact. The company sells its solutions through its direct sales teams. The company was formerly known as ShotSpotter, Inc. and changed its name to SoundThinking, Inc. in April 2023. SoundThinking, Inc. was founded in 1996 and is headquartered in Fremont, California.
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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