American International Group (NYSE:AIG) and Tokio Marine (OTCMKTS:TKOMY) are both large-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, analyst recommendations, risk, dividends, earnings, institutional ownership and profitability.
Volatility & Risk
American International Group has a beta of 1.36, indicating that its stock price is 36% more volatile than the S&P 500. Comparatively, Tokio Marine has a beta of 0.61, indicating that its stock price is 39% less volatile than the S&P 500.
Institutional & Insider Ownership
87.0% of American International Group shares are held by institutional investors. Comparatively, 0.1% of Tokio Marine shares are held by institutional investors. 0.2% of American International Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Dividends
American International Group pays an annual dividend of $1.28 per share and has a dividend yield of 2.7%. Tokio Marine pays an annual dividend of $2.15 per share and has a dividend yield of 4.3%. American International Group pays out 27.9% of its earnings in the form of a dividend. Tokio Marine pays out 60.9% 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 1 consecutive years.
Profitability
This table compares American International Group and Tokio Marine's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
American International Group | -10.82% | 3.62% | 0.42% |
Tokio Marine | 3.73% | 6.66% | 0.94% |
Analyst Recommendations
This is a breakdown of current recommendations for American International Group and Tokio Marine, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
American International Group | 0 | 7 | 7 | 0 | 2.50 |
Tokio Marine | 0 | 0 | 1 | 0 | 3.00 |
American International Group currently has a consensus price target of $42.8462, indicating a potential downside of 8.78%. Given American International Group's higher probable upside, analysts clearly believe American International Group is more favorable than Tokio Marine.
Valuation and Earnings
This table compares American International Group and Tokio Marine's gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
American International Group | $49.75 billion | 0.82 | $3.35 billion | $4.59 | 10.23 |
Tokio Marine | $50.28 billion | 0.70 | $2.39 billion | $3.53 | 14.25 |
American International Group has higher earnings, but lower revenue than Tokio Marine. American International Group is trading at a lower price-to-earnings ratio than Tokio Marine, indicating that it is currently the more affordable of the two stocks.
Summary
American International Group beats Tokio Marine on 10 of the 17 factors compared between the two stocks.