Head to Head Analysis: American International Group (AIG) and Its Peers

American International Group (NYSE: AIG) is one of 22 public companies in the “Multiline Insurance & Brokers” industry, but how does it weigh in compared to its competitors? We will compare American International Group to similar companies based on the strength of its institutional ownership, profitability, earnings, risk, analyst recommendations, valuation and dividends.

Insider and Institutional Ownership

85.7% of American International Group shares are held by institutional investors. Comparatively, 62.1% of shares of all “Multiline Insurance & Brokers” companies are held by institutional investors. 0.5% of American International Group shares are held by company insiders. Comparatively, 15.4% of shares of all “Multiline Insurance & Brokers” companies are held by company 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.

Analyst Recommendations

This is a breakdown of current ratings for American International Group and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
American International Group 2 6 9 0 2.41
American International Group Competitors 112 803 849 21 2.44

American International Group currently has a consensus target price of $67.68, indicating a potential upside of 13.02%. As a group, “Multiline Insurance & Brokers” companies have a potential downside of 3.85%. Given American International Group’s higher probable upside, research analysts clearly believe American International Group is more favorable than its competitors.

Valuation & Earnings

This table compares American International Group and its competitors gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
American International Group $52.37 billion -$849.00 million -23.61
American International Group Competitors $11.13 billion $534.17 million 163.19

American International Group has higher revenue, but lower earnings than its competitors. American International Group is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Volatility and Risk

American International Group has a beta of 1.17, meaning that its stock price is 17% more volatile than the S&P 500. Comparatively, American International Group’s competitors have a beta of 1.28, meaning that their average stock price is 28% more volatile than the S&P 500.

Profitability

This table compares American International Group and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
American International Group -5.07% 3.43% 0.51%
American International Group Competitors 6.14% 11.23% 2.56%

Dividends

American International Group pays an annual dividend of $1.28 per share and has a dividend yield of 2.2%. American International Group pays out -51.0% of its earnings in the form of a dividend. As a group, “Multiline Insurance & Brokers” companies pay a dividend yield of 2.0% and pay out 50.5% of their earnings in the form of a dividend. American International Group has raised its dividend for 3 consecutive years. American International Group is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.

Summary

American International Group competitors beat American International Group on 9 of the 15 factors compared.

American International Group Company Profile

American International Group, Inc. is a global insurance company. The Company provides a range of property casualty insurance, life insurance, retirement products and other financial services to commercial and individual customers. Its segments include Commercial Insurance, Consumer Insurance, Other Operations and Legacy Portfolio. The Commercial Insurance segment is a provider of insurance products and services for commercial customers. It includes property casualty networks. The Consumer Insurance segment is a franchise that brings together a portfolio of retirement, life insurance and personal insurance products offered through multiple distribution networks. The Other Operations segment consists of businesses and items not attributed to its Commercial and Consumer modules or its Legacy Portfolio. The Legacy Portfolio segment includes Legacy Property and Casualty Run-Off Insurance Lines, as well as Legacy Life Insurance Run-Off Lines and Legacy Investments.

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