Reviewing International General Insurance (NASDAQ:IGIC) and American International Group (NYSE:AIG)

American International Group (NYSE:AIG) and International General Insurance (NASDAQ:IGIC) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, earnings, analyst recommendations, institutional ownership, profitability, valuation and dividends.

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%

Risk & Volatility

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.

Insider & Institutional Ownership

90.6% of American International Group shares are held by institutional investors. Comparatively, 54.2% of International General Insurance shares are held by institutional investors. 0.6% of American International Group shares are held by company insiders. Comparatively, 20.1% of International General Insurance shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings and target prices for American International Group and International General Insurance, as reported 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

American International Group presently has a consensus target price of $88.16, suggesting a potential upside of 18.35%. International General Insurance has a consensus target price of $30.00, suggesting a potential upside of 20.00%. Given International General Insurance’s higher probable upside, analysts plainly believe International General Insurance is more favorable than American International Group.

Earnings and Valuation

This table compares American International Group and International General Insurance”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	$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.

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 raised its dividend for 3 consecutive years and International General Insurance has raised 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.

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.