Crawford & Company (NYSE:CRD.B) and American International Group (AIG) Head-To-Head Analysis
American International Group (NYSE: AIG) and Crawford & Company (NYSE:CRD.B) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, profitabiliy, dividends, risk, valuation, analyst recommendations and institutional ownership.
American International Group pays an annual dividend of $1.28 per share and has a dividend yield of 2.0%. Crawford & Company pays an annual dividend of $0.20 per share. American International Group pays out 412.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Crawford & Company pays out 35.1% of its earnings in the form of a dividend. Crawford & Company has raised its dividend for 3 consecutive years.
Volatility and Risk
American International Group has a beta of 1.13, indicating that its stock price is 13% more volatile than the S&P 500. Comparatively, Crawford & Company has a beta of 1.75, indicating that its stock price is 75% more volatile than the S&P 500.
This is a summary of recent ratings and price targets for American International Group and Crawford & Company, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|American International Group||1||2||9||1||2.77|
|Crawford & Company||0||0||1||0||3.00|
American International Group presently has a consensus target price of $64.07, suggesting a potential upside of 1.13%. Crawford & Company has a consensus target price of $15.00, suggesting a potential upside of Infinity. Given Crawford & Company’s stronger consensus rating and higher possible upside, analysts clearly believe Crawford & Company is more favorable than American International Group.
This table compares American International Group and Crawford & Company’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|American International Group||1.00%||5.36%||0.88%|
|Crawford & Company||3.00%||26.35%||5.30%|
Insider & Institutional Ownership
86.2% of American International Group shares are held by institutional investors. Comparatively, 17.6% of Crawford & Company shares are held by institutional investors. 0.5% of American International Group shares are held by company insiders. Comparatively, 51.0% of Crawford & Company shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Valuation and Earnings
This table compares American International Group and Crawford & Company’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|American International Group||$52.09 billion||1.13||$6.13 billion||$0.31||204.36|
|Crawford & Company||N/A||N/A||N/A||$0.57||N/A|
American International Group has higher revenue and earnings than Crawford & Company. Crawford & Company 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.
Crawford & Company beats American International Group on 10 of the 16 factors compared between the two stocks.
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.
Crawford & Company Company Profile
Crawford & Company (Crawford) is an independent provider of claims management solutions to insurance and self-insured entities. The Company’s Crawford Solution offers claims services, business process outsourcing and consulting services for various product lines, including property and casualty claims management; workers’ compensation claims and medical management, and legal settlement administration. Crawford conducts its operations through four segments: U.S. Services, which primarily serves the property and casualty insurance company markets in the United States; International, which serves the property and casualty insurance company, and self-insurance markets outside the United States; Broadspire, which serves the self-insurance marketplace, primarily in the United States, and Garden City Group, which serves the class action, regulatory, mass tort, bankruptcy and other legal settlement markets, primarily in the United States.
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