Head-To-Head Analysis: Tian Ruixiang (NASDAQ:TIRX) & American International Group (NYSE:AIG)

Tian Ruixiang (NASDAQ:TIRX) and American International Group (NYSE:AIG) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, risk, profitability, valuation, earnings and dividends.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Tian Ruixiang and American International Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tian Ruixiang	0	0	0	0	0.00
American International Group	0	8	7	2	2.65

American International Group has a consensus target price of $88.3333, indicating a potential upside of 12.86%. Given American International Group’s stronger consensus rating and higher possible upside, analysts plainly believe American International Group is more favorable than Tian Ruixiang.

Risk and Volatility

Tian Ruixiang has a beta of 0.89, suggesting that its share price is 11% less volatile than the S&P 500. Comparatively, American International Group has a beta of 0.63, suggesting that its share price is 37% less volatile than the S&P 500.

Profitability

This table compares Tian Ruixiang and American International Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tian Ruixiang	N/A	N/A	N/A
American International Group	-7.05%	7.13%	1.87%

Valuation and Earnings

This table compares Tian Ruixiang and American International Group”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tian Ruixiang	$3.22 million	0.22	-$3.99 million	N/A	N/A
American International Group	$27.25 billion	1.66	-$1.40 billion	($2.66)	-29.42

Tian Ruixiang has higher earnings, but lower revenue than American International Group.

Institutional and Insider Ownership

10.7% of Tian Ruixiang shares are owned by institutional investors. Comparatively, 90.6% of American International Group shares are owned by institutional investors. 39.6% of Tian Ruixiang shares are owned by company insiders. Comparatively, 0.6% of American International Group shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

American International Group beats Tian Ruixiang on 9 of the 13 factors compared between the two stocks.

About Tian Ruixiang

Tian Ruixiang Holdings Ltd, together its subsidiaries, operates as an insurance broker in China and the United States. It distributes a range of insurance products, including property and casualty insurance, such as automobile, commercial property, liability, and accidental insurance; and life insurance comprising individual and group life insurances, as well as health and miscellaneous insurance. It serves individual or institutional customers. The company was founded in 2010 and is headquartered in Beijing, China.

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.