TWFG (NASDAQ:TWFG – Get Free Report) and American International Group (NYSE:AIG – Get Free Report) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, valuation, institutional ownership, earnings, analyst recommendations, risk and profitability.
Earnings & Valuation
This table compares TWFG and American International Group”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| TWFG | $247.08 million | 4.73 | $7.67 million | $0.51 | 40.80 |
| American International Group | $26.78 billion | 1.58 | $3.10 billion | $5.42 | 14.52 |
Risk and Volatility
TWFG has a beta of 0.35, suggesting that its stock price is 65% less volatile than the S&P 500. Comparatively, American International Group has a beta of 0.58, suggesting that its stock price is 42% less volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent ratings and target prices for TWFG and American International Group, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| TWFG | 1 | 4 | 3 | 0 | 2.25 |
| American International Group | 0 | 13 | 8 | 1 | 2.45 |
TWFG presently has a consensus target price of $30.83, suggesting a potential upside of 48.17%. American International Group has a consensus target price of $87.95, suggesting a potential upside of 11.72%. Given TWFG’s higher probable upside, research analysts plainly believe TWFG is more favorable than American International Group.
Institutional & Insider Ownership
90.6% of American International Group shares are owned by institutional investors. 66.5% of TWFG shares are owned by insiders. Comparatively, 0.5% of American International Group shares are owned by 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.
Profitability
This table compares TWFG and American International Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| TWFG | 3.11% | 13.72% | 11.32% |
| American International Group | 11.56% | 9.79% | 2.48% |
Summary
American International Group beats TWFG on 9 of the 15 factors compared between the two stocks.
About TWFG
TWFG, Inc. operates an independent distribution platform for personal and commercial insurance products in the United States. Its personal and commercial insurance products include auto, home, renters, life, health, motorcycle, umbrella, boat, recreational vehicle, flood, wind, event, luxury item, general liability, property, business auto, workers’ compensation, business owner policy, and professional liability insurance products, as well as commercial bonds and group benefits. The company was founded in 2001 and is based in The Woodlands, Texas. TWFG, Inc. operates as a subsidiary of Bunch Family Holdings, LLC.
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.
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