American International Group (NYSE:AIG) & TWFG (NASDAQ:TWFG) Head-To-Head Contrast

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
American International Group	11.56%	9.79%	2.48%
TWFG	3.11%	13.72%	11.32%

Volatility and Risk

American International Group has a beta of 0.58, suggesting that its stock price is 42% less volatile than the S&P 500. Comparatively, TWFG has a beta of 0.35, suggesting that its stock price is 65% less volatile than the S&P 500.

Insider & Institutional Ownership

90.6% of American International Group shares are owned by institutional investors. 0.5% of American International Group shares are owned by insiders. Comparatively, 66.5% of TWFG 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.

Valuation and Earnings

This table compares American International Group and TWFG”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	$26.77 billion	1.60	$3.10 billion	$5.42	14.77
TWFG	$247.08 million	4.50	$7.67 million	$0.51	38.80

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

Analyst Ratings

This is a breakdown of current ratings and target prices for American International Group and TWFG, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
American International Group	0	13	8	1	2.45
TWFG	2	3	3	0	2.13

American International Group presently has a consensus target price of $87.95, indicating a potential upside of 9.87%. TWFG has a consensus target price of $30.83, indicating a potential upside of 55.80%. Given TWFG’s higher possible upside, analysts clearly believe TWFG is more favorable than American International Group.

Summary

American International Group beats TWFG on 9 of the 15 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 TWFG

TWFG, Inc. operates an independent distribution platform for personal and commercial insurance products in the United States. Its personal and commercial insurance products include auto, home, renters, life, health, motorcycle, umbrella, boat, recreational vehicle, flood, wind, event, luxury item, general liability, property, business auto, workers’ compensation, business owner policy, and professional liability insurance products, as well as commercial bonds and group benefits. The company was founded in 2001 and is based in The Woodlands, Texas. TWFG, Inc. operates as a subsidiary of Bunch Family Holdings, LLC.