Head-To-Head Contrast: Corebridge Financial (NYSE:CRBG) versus American International Group (NYSE:AIG)

American International Group (NYSE:AIG) and Corebridge Financial (NYSE:CRBG) are both large-cap finance companies, but which is the better business? We will compare the two companies based on the strength of their risk, analyst recommendations, earnings, profitability, institutional ownership, dividends and valuation.

Risk and Volatility

American International Group has a beta of 0.7, meaning that its stock price is 30% less volatile than the S&P 500. Comparatively, Corebridge Financial has a beta of 1.06, meaning that its stock price is 6% more volatile than the S&P 500.

Insider & Institutional Ownership

90.6% of American International Group shares are held by institutional investors. Comparatively, 98.3% of Corebridge Financial shares are held by institutional investors. 0.6% of American International Group shares are held by company insiders. Comparatively, 0.3% of Corebridge Financial shares are held by company 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
American International Group	11.51%	7.88%	2.04%
Corebridge Financial	-1.80%	22.06%	0.74%

Dividends

American International Group pays an annual dividend of $1.80 per share and has a dividend yield of 2.3%. Corebridge Financial pays an annual dividend of $0.96 per share and has a dividend yield of 2.9%. American International Group pays out 34.1% of its earnings in the form of a dividend. Corebridge Financial pays out -157.4% 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 3 consecutive years and Corebridge Financial has raised its dividend for 1 consecutive years. Corebridge Financial is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Ratings

This is a summary of current ratings and recommmendations for American International Group and Corebridge Financial, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
American International Group	0	9	7	2	2.61
Corebridge Financial	0	3	8	0	2.73

American International Group presently has a consensus price target of $88.27, indicating a potential upside of 12.44%. Corebridge Financial has a consensus price target of $40.80, indicating a potential upside of 22.17%. Given Corebridge Financial’s stronger consensus rating and higher possible upside, analysts plainly believe Corebridge Financial is more favorable than American International Group.

Earnings and Valuation

This table compares American International Group and Corebridge Financial”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
American International Group	$27.25 billion	1.60	-$1.40 billion	$5.28	14.87
Corebridge Financial	$19.58 billion	0.92	$2.23 billion	($0.61)	-54.75

Corebridge Financial has lower revenue, but higher earnings than American International Group. Corebridge Financial 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.

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 Corebridge Financial

Corebridge Financial, Inc. provides retirement solutions and insurance products in the United States. The company operates through Individual Retirement, Group Retirement, Life Insurance, and Institutional Markets segments. The Individual Retirement segment provides fixed annuities, fixed index annuities, variable annuities, and retail mutual funds. The Group Retirement segment offers record-keeping services, plan administration and compliance services, and financial planning and advisory solutions to employer-defined contribution plans and their participants, as well as proprietary and non-proprietary annuities, advisory services, and brokerage products. The Life Insurance segment offers term life and universal life insurance in the United States, as well as issues individual life, whole life, and group life insurance in the United Kingdom; and distributes medical insurance in Ireland. The Institutional Markets segment provides stable value wraps, structured settlement and pension risk transfer annuities, corporate and bank owned life insurance, private placement variable universal life and annuities products, and guaranteed investment contracts. The company was formerly known as SAFG Retirement Services, Inc. Corebridge Financial, Inc. was incorporated in 1998 and is headquartered in Houston, Texas. The company operates as a subsidiary of American International Group, Inc.