Federated National Holding Co Common Stock (NYSE: AIG) and American International Group (NYSE:AIG) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, analyst recommendations, institutional ownership, profitability, valuation, dividends and risk.
Valuation & Earnings
This table compares Federated National Holding Co Common Stock and American International Group’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Federated National Holding Co Common Stock||$391.66 million||0.85||$7.98 million||$0.60||43.50|
|American International Group||$49.52 billion||0.95||-$6.08 billion||$2.40||22.15|
Federated National Holding Co Common Stock has higher earnings, but lower revenue than American International Group. American International Group is trading at a lower price-to-earnings ratio than Federated National Holding Co Common Stock, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent recommendations and price targets for Federated National Holding Co Common Stock and American International Group, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Federated National Holding Co Common Stock||0||0||1||1||3.50|
|American International Group||0||4||10||0||2.71|
Federated National Holding Co Common Stock currently has a consensus target price of $27.00, indicating a potential upside of 3.45%. American International Group has a consensus target price of $64.33, indicating a potential upside of 21.01%. Given American International Group’s higher probable upside, analysts plainly believe American International Group is more favorable than Federated National Holding Co Common Stock.
Volatility & Risk
Federated National Holding Co Common Stock has a beta of 1.1, meaning that its stock price is 10% more volatile than the S&P 500. Comparatively, American International Group has a beta of 1.25, meaning that its stock price is 25% more volatile than the S&P 500.
Federated National Holding Co Common Stock pays an annual dividend of $0.32 per share and has a dividend yield of 1.2%. American International Group pays an annual dividend of $1.28 per share and has a dividend yield of 2.4%. Federated National Holding Co Common Stock pays out 53.3% of its earnings in the form of a dividend. American International Group pays out 53.3% 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. Federated National Holding Co Common Stock has raised its dividend for 5 consecutive years.
This table compares Federated National Holding Co Common Stock and American International Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Federated National Holding Co Common Stock||4.42%||8.13%||1.84%|
|American International Group||-13.67%||2.03%||0.27%|
Insider & Institutional Ownership
59.1% of Federated National Holding Co Common Stock shares are owned by institutional investors. Comparatively, 87.8% of American International Group shares are owned by institutional investors. 10.5% of Federated National Holding Co Common Stock shares are owned by insiders. Comparatively, 0.1% of American International Group shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Federated National Holding Co Common Stock beats American International Group on 9 of the 17 factors compared between the two stocks.
Federated National Holding Co Common Stock Company Profile
FedNat Holding Company, through its subsidiaries, engages in insurance underwriting, distribution, and claims processing business in the United States. The company underwrites homeowner's multi-peril, personal automobile, commercial general liability, federal flood, and other lines of insurance. It markets and distributes its own and third-party insurers' products, and other services through a network of independent and general agents. The company was formerly known as Federated National Holding Company and changed its name to FedNat Holding Company in May 2018. FedNat Holding Company was founded in 1991 and is based in Sunrise, Florida.
American International Group Company Profile
American International Group, Inc. provides insurance products for commercial, institutional, and individual customers primarily in the United States, Europe, and Japan. The company's General Insurance segment offers general liability, environmental, commercial automobile liability, workers' compensation, excess casualty, and crisis management insurance products, as well as various risk-sharing and other customized structured programs; commercial, industrial, and energy-related property insurance; and aerospace, political risk, trade credit, portfolio solutions, surety, and marine insurance. It also provides professional liability insurance products for a range of businesses and risks, including directors and officer's liability, 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, voluntary and sponsor-paid personal accident, and supplemental health products; extended warranty insurance products; and travel insurance products. Its Life and Retirement segment offers variable annuities, fixed index and fixed annuities, and retail mutual funds; group mutual funds, fixed annuities, and variable annuities, as well as individual annuity and investment products, and financial planning and advisory services; and term life and universal life insurance. This segment 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, wirehouses, and broker-dealers. The company's Legacy Portfolio segment offers legacy insurance products. American International Group, Inc. was founded in 1919 and is headquartered in New York, New York.
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