Contrasting World Access (OTCMKTS:WAXS) and American International Group (NYSE:AIG)

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

Valuation & Earnings

This table compares American International Group and World Access”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	$27.25 billion	1.44	-$1.40 billion	$5.50	13.25
World Access	N/A	N/A	N/A	N/A	N/A

World Access has lower revenue, but higher earnings than American International Group.

Institutional & Insider Ownership

90.6% of American International Group shares are owned by institutional investors. 0.6% of American International Group shares are owned by company insiders. Comparatively, 16.4% of World Access shares are owned by company 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.

Profitability

This table compares American International Group and World Access’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
American International Group	11.89%	9.09%	2.32%
World Access	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of current recommendations for American International Group and World Access, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
American International Group	0	14	7	2	2.48
World Access	0	0	0	0	0.00

American International Group currently has a consensus price target of $87.68, suggesting a potential upside of 20.36%. Given American International Group’s stronger consensus rating and higher probable upside, research analysts plainly believe American International Group is more favorable than World Access.

Summary

American International Group beats World Access on 9 of the 10 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 World Access

World Access, Inc. operates as a global services company providing solutions in customer care to organizations in the travel, financial, health care, and call center industries. It consists of three full service companies and three specialized services companies. World Access Service Corporation serves companies located in the US and companies that have travelers or employees visiting North America. World Access Canada serves companies located in Canada; and World Access Asia serves companies located in eastern Asia, including Japan. World Access Europe provides members of World Access with logistical and medical support throughout the region. Other companies include World Access Provider Network Services; and World Access Transport Services that manages and coordinates all medical evacuation and repatriation activities for World Access. The company is based in Atlanta, Georgia. In April 2001, the company filed voluntary petitions for Chapter 11 relief in the United States Bankruptcy Court on behalf of itself and certain of its U.S. subsidiaries.