Reviewing American International Group (NYSE:AIG) and Swiss Re (OTCMKTS:SSREY)

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

Volatility and Risk

American International Group has a beta of 0.52, meaning that its share price is 48% less volatile than the S&P 500. Comparatively, Swiss Re has a beta of 0.5, meaning that its share price is 50% less volatile than the S&P 500.

Dividends

American International Group pays an annual dividend of $2.00 per share and has a dividend yield of 2.6%. Swiss Re pays an annual dividend of $1.26 per share and has a dividend yield of 3.3%. American International Group pays out 35.3% of its earnings in the form of a dividend. American International Group has raised its dividend for 3 consecutive years.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
American International Group	11.86%	10.93%	2.75%
Swiss Re	N/A	N/A	N/A

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
American International Group	$26.78 billion	1.52	$3.10 billion	$5.67	13.54
Swiss Re	$43.14 billion	1.07	$4.74 billion	N/A	N/A

Swiss Re has higher revenue and earnings than American International Group.

Insider and Institutional Ownership

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

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
American International Group	0	13	6	1	2.40
Swiss Re	4	3	0	1	1.75

American International Group presently has a consensus target price of $87.78, suggesting a potential upside of 14.35%. Given American International Group’s stronger consensus rating and higher probable upside, equities analysts plainly believe American International Group is more favorable than Swiss Re.

Summary

American International Group beats Swiss Re on 11 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 Swiss Re

Swiss Re AG, together with its subsidiaries, provides wholesale reinsurance, insurance, other insurance-based forms of risk transfer, and other insurance-related services worldwide. The company operates through three segments: Property & Casualty Reinsurance, Life & Health Reinsurance, and Corporate Solutions. The Property & Casualty Reinsurance segment underwrites property reinsurance, including property, credit and surety, engineering, aviation, marine, agriculture, retakaful, and facultative reinsurance solutions; and casualty reinsurance, such as liability, motor, worker's compensation, personal accident, management and professional liability, cyber, and facultative reinsurance solutions. The Life & Health Reinsurance segment underwrites life and health insurance products. The Corporate Solutions segment offers standard risk transfer covers and multi-line programs to customized solutions. It serves stock and mutual insurance companies, public sector and governmental entities, mid-sized and large corporations, and individuals. The company was founded in 1863 and is headquartered in Zurich, Switzerland.