Head to Head Analysis: Everest Group (NYSE:EG) and American International Group (NYSE:AIG)

Everest Group (NYSE:EG) and American International Group (NYSE:AIG) are both large-cap finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, valuation, dividends, profitability, earnings, analyst recommendations and risk.

Valuation and Earnings

This table compares Everest Group 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
Everest Group	$17.28 billion	0.83	$1.37 billion	$13.13	25.99
American International Group	$27.25 billion	1.67	-$1.40 billion	$5.50	15.35

Everest Group has higher earnings, but lower revenue than American International Group. American International Group is trading at a lower price-to-earnings ratio than Everest Group, indicating that it is currently the more affordable of the two stocks.

Dividends

Everest Group pays an annual dividend of $8.00 per share and has a dividend yield of 2.3%. American International Group pays an annual dividend of $1.80 per share and has a dividend yield of 2.1%. Everest Group pays out 60.9% of its earnings in the form of a dividend. American International Group pays out 32.7% 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. Everest Group has raised its dividend for 1 consecutive years and American International Group has raised its dividend for 3 consecutive years.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Everest Group	3.12%	3.74%	0.92%
American International Group	11.89%	9.09%	2.32%

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Everest Group	1	12	5	0	2.22
American International Group	0	14	7	2	2.48

Everest Group presently has a consensus target price of $367.87, indicating a potential upside of 7.78%. American International Group has a consensus target price of $89.28, indicating a potential upside of 5.74%. Given Everest Group’s higher probable upside, analysts plainly believe Everest Group is more favorable than American International Group.

Institutional and Insider Ownership

92.6% of Everest Group shares are held by institutional investors. Comparatively, 90.6% of American International Group shares are held by institutional investors. 1.1% of Everest Group shares are held by company insiders. Comparatively, 0.6% of American International Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Risk and Volatility

Everest Group has a beta of 0.38, meaning that its stock price is 62% less volatile than the S&P 500. Comparatively, American International Group has a beta of 0.62, meaning that its stock price is 38% less volatile than the S&P 500.

Summary

American International Group beats Everest Group on 11 of the 18 factors compared between the two stocks.

About Everest Group

Everest Group, Ltd., through its subsidiaries, provides reinsurance and insurance products in the United States, Europe, and internationally. The company operates through two segment, Insurance and Reinsurance. The Reinsurance segment writes property and casualty reinsurance; and specialty lines of business through reinsurance brokers, as well as directly with ceding companies in the United States, Bermuda, Ireland, Canada, Singapore, Switzerland, and the United Kingdom. The Insurance Operations segment writes property and casualty insurance directly, as well as through brokers, surplus lines, and general agents in the United States, Bermuda, Canada, Europe, South America, Singapore, France, Germany, Spain, Canada, Chile, the United Kingdom, Ireland, and the Netherlands. The company also provides treaty and facultative reinsurance products; admitted and non-admitted insurance products; and accident and health, specialty underwriters, eversports and entertainment, and surety and credit, marine and aviation, as well as structured and property hybrid solutions. In addition, it offers commercial property and casualty insurance products through wholesale and retail brokers, surplus lines brokers, and program administrators. The company was formerly known as Everest Re Group, Ltd. and changed its name to Everest Group, Ltd. in July 2023.Everest Group, Ltd., was founded in 1973 and is headquartered in Hamilton, Bermuda.

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.