American International Group (NYSE: AIG) and NFP (NYSE:NFP) are both financials companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, earnings, risk, valuation, institutional ownership, dividends and analyst recommendations.
This table compares American International Group and NFP’s 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 pays an annual dividend of $1.28 per share and has a dividend yield of 2.2%. NFP does not pay a dividend. American International Group pays out -51.4% of its earnings in the form of a dividend.
This is a breakdown of recent recommendations and price targets for American International Group and NFP, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|American International Group||1||7||8||0||2.44|
American International Group presently has a consensus target price of $67.25, indicating a potential upside of 14.07%.
Valuation and Earnings
This table compares American International Group and NFP’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|American International Group||$52.37 billion||1.01||-$849.00 million||($2.49)||-23.68|
NFP has lower revenue, but higher earnings than American International Group. American International Group is trading at a lower price-to-earnings ratio than NFP, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
85.8% of American International Group shares are owned by institutional investors. 0.5% of American International Group shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
American International Group beats NFP on 8 of the 11 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.
NFP Company Profile
National Financial Partners Corp. (NFP) and its benefits, insurance and wealth management businesses provide a range of advisory and brokerage services to the Company’s clients. NFP serves corporate and high net worth individual clients throughout the United States and in Canada, with a focus on the middle market and entrepreneurs. The Company operates in three segments: the Corporate Client Group (the CCG), the Individual Client Group (the ICG) and the Advisor Services Group (the ASG). The CCG is a corporate benefits advisor in the middle market, offering independent solutions. The ICG is in the delivery of independent life insurance, annuities, long term care and wealth transfer solutions for high net worth individuals. The ASG, including NFP Securities, Inc. (NFPSI), is an independent broker-dealer and registered investment advisor. In July 2013, National Financial Partners Corp announced the completion of its acquisition by a controlled affiliate of Madison Dearborn Partners, LLC.
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