American International Group (NYSE:AIG – Get Free Report) and International General Insurance (NASDAQ:IGIC – Get Free Report) are both finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, dividends, earnings, risk, profitability, analyst recommendations and institutional ownership.
Volatility & Risk
American International Group has a beta of 0.5, suggesting that its share price is 50% less volatile than the S&P 500. Comparatively, International General Insurance has a beta of 0.09, suggesting that its share price is 91% less volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of recent ratings and recommmendations for American International Group and International General Insurance, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| American International Group | 0 | 11 | 8 | 0 | 2.42 |
| International General Insurance | 1 | 0 | 2 | 0 | 2.33 |
Dividends
American International Group pays an annual dividend of $2.00 per share and has a dividend yield of 2.7%. International General Insurance pays an annual dividend of $0.30 per share and has a dividend yield of 1.2%. American International Group pays out 36.6% of its earnings in the form of a dividend. International General Insurance pays out 12.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. American International Group has increased its dividend for 3 consecutive years and International General Insurance has increased its dividend for 2 consecutive years. American International Group is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Insider and Institutional Ownership
90.6% of American International Group shares are owned by institutional investors. Comparatively, 54.2% of International General Insurance shares are owned by institutional investors. 0.6% of American International Group shares are owned by company insiders. Comparatively, 20.1% of International General Insurance shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Earnings & Valuation
This table compares American International Group and International General Insurance”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| American International Group | $26.77 billion | 1.45 | $3.10 billion | $5.47 | 13.62 |
| International General Insurance | $516.90 million | 2.06 | $127.15 million | $2.49 | 10.04 |
American International Group has higher revenue and earnings than International General Insurance. International General Insurance is trading at a lower price-to-earnings ratio than American International Group, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares American International Group and International General Insurance’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| American International Group | 11.13% | 11.05% | 2.78% |
| International General Insurance | 20.68% | 17.03% | 5.45% |
Summary
American International Group beats International General Insurance on 10 of the 17 factors compared between the two stocks.
About American International Group
American International Group, Inc. offers insurance products for commercial, institutional, and individual customers in North America and internationally. It operates through three segments: General Insurance, Life and Retirement, and Other Operations. The General Insurance segment provides commercial and industrial property insurance, including business interruption and package insurance that cover exposure to made and natural disasters; general liability, environmental, commercial automobile liability, workers’ compensation, excess casualty, and crisis management insurance products; and professional liability insurance. This segment offers marine, energy-related property insurance, aviation, political risk, trade credit, trade finance, and portfolio solutions, as well as operates reinsurance business; voluntary and sponsor-paid personal accident, and supplemental health products; and personal auto and personal property insurance. Its Life and Retirement segment offers individual retirement products, including variable, fixed index, and fixed annuities, as well as retail mutual funds; group retirement products comprising record-keeping, plan administrative and compliance services, financial planning, and advisory solutions; life insurance, including term and universal life insurance; and institutional markets products, which includes wrap products, structured settlement, pension risk transfer annuities, corporate and bank-owned life insurance, high net worth, and guaranteed investment contract products. It distributes its products through a network of brokers, agents, advisors, banks, and other distributors. The company was founded in 1919 and is headquartered in New York, New York.
About International General Insurance
International General Insurance Holdings Ltd. engages in the provision of specialty insurance and reinsurance solutions worldwide. The company operates through three segments: Specialty Long-tail, Specialty Short-tail, and Reinsurance. It is involved in underwriting a portfolio of specialty risks, including energy, property, construction and engineering, ports and terminals, general aviation, political violence, professional lines, financial institutions, motor, marine liability, contingency, marine, treaty, and casualty insurance and reinsurance. The company was founded in 2001 and is based in Amman, Jordan.
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