American International Group (NYSE: AIG) is one of 20 publicly-traded companies in the “Multiline Insurance & Brokers” industry, but how does it contrast to its rivals? We will compare American International Group to similar companies based on the strength of its valuation, institutional ownership, dividends, profitability, risk, earnings and analyst recommendations.

Valuation & Earnings

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

Gross Revenue NetIncome Price/Earnings Ratio
American International Group $52.37 billion -$849.00 million -24.12
American International Group Competitors $11.13 billion $534.17 million 201.82

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

Dividends

American International Group pays an annual dividend of $1.28 per share and has a dividend yield of 2.1%. American International Group pays out -51.4% 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 49.7% of their earnings in the form of a dividend. American International Group has increased its dividend for 3 consecutive years. American International Group is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.

Profitability

This table compares American International Group and its rivals’ 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 6.70% 12.28% 2.73%

Volatility and Risk

American International Group has a beta of 1.23, suggesting that its share price is 23% more volatile than the S&P 500. Comparatively, American International Group’s rivals have a beta of 1.32, suggesting that their average share price is 32% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings for American International Group and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
American International Group 2 5 9 0 2.44
American International Group Competitors 111 694 792 21 2.45

American International Group currently has a consensus target price of $68.12, indicating a potential upside of 13.42%. As a group, “Multiline Insurance & Brokers” companies have a potential downside of 4.78%. Given American International Group’s higher probable upside, analysts plainly believe American International Group is more favorable than its rivals.

Insider & Institutional Ownership

83.5% of American International Group shares are held by institutional investors. Comparatively, 62.2% of shares of all “Multiline Insurance & Brokers” companies are held by institutional investors. 0.5% of American International Group shares are held by insiders. Comparatively, 15.5% of shares of all “Multiline Insurance & Brokers” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

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

About American International Group

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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