American International Group (NYSE:AIG – Get Rating) and Metromile (NASDAQ:MILE – Get Rating) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, risk, profitability, institutional ownership, analyst recommendations, earnings and valuation.
Institutional and Insider Ownership
90.2% of American International Group shares are held by institutional investors. Comparatively, 62.5% of Metromile shares are held by institutional investors. 0.3% of American International Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
This table compares American International Group and Metromile’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|American International Group||22.23%||7.12%||0.73%|
Earnings and Valuation
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|American International Group||$52.06 billion||0.75||$9.39 billion||$15.23||3.36|
|Metromile||$104.90 million||1.31||-$216.46 million||($1.81)||-0.58|
American International Group has higher revenue and earnings than Metromile. Metromile 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.
This is a breakdown of current ratings and recommmendations for American International Group and Metromile, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|American International Group||0||5||2||0||2.29|
American International Group presently has a consensus price target of $65.29, suggesting a potential upside of 27.49%. Metromile has a consensus price target of $2.05, suggesting a potential upside of 95.24%. Given Metromile’s higher probable upside, analysts clearly believe Metromile is more favorable than American International Group.
Risk & Volatility
American International Group has a beta of 1.17, suggesting that its share price is 17% more volatile than the S&P 500. Comparatively, Metromile has a beta of 0.46, suggesting that its share price is 54% less volatile than the S&P 500.
American International Group beats Metromile on 12 of the 14 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. The company's General Insurance segment provides general liability, environmental, commercial automobile liability, workers' compensation, casualty, and crisis management insurance products; commercial, industrial, and energy-related property insurance; and aerospace, political risk, trade credit, portfolio solutions, crop, and marine insurance. It also provides professional liability insurance products for a range of businesses and risks, including directors and officers, mergers and acquisitions, fidelity, employment practices, fiduciary liability, cyber risk, kidnap and ransom, and errors and omissions insurance. In addition, this segment offers personal auto and property insurance, such as auto, homeowners, umbrella, yacht, fine art, and collections; voluntary and sponsor-paid personal accident; supplemental health products; extended warranty insurance products; and travel insurance products. Its Life and Retirement segment offers variable annuities, index and fixed annuities, and retail mutual funds; and financial planning and advisory services; record-keeping, plan administrative, and compliance services; and term life and universal life insurance. It also provides stable value wrap products, and structured settlement and pension risk transfer annuities; and corporate- and bank-owned life insurance and guaranteed investment contracts. This segment sells its products through independent marketing organizations, independent insurance agents, financial advisors, direct marketing, banks, and broker-dealers. The company was founded in 1919 and is headquartered in New York, New York.
Metromile, Inc. provides insurance policies for automobile owners in the United States. It operates through two segments, Insurance Services and Enterprise Business Solutions. The company offers pay-per-mile auto insurance policies. It also provides The Pulse, a device that plugs into the diagnostic port of its customer's car and transmits data, such as miles driven, driving habits, phone use, speeding, hard braking, accelerating, cornering, and location over wireless cellular networks. In addition, the company offers access to its technology under software as a service arrangement, as well as professional services to third-party customers. Metromile, Inc. was founded in 2011 and is headquartered in San Francisco, California.
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