American International Group (NYSE:AIG) and Donegal Group (NASDAQ:DGICB) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, profitability, earnings, analyst recommendations, institutional ownership, risk and valuation.
American International Group pays an annual dividend of $1.28 per share and has a dividend yield of 3.1%. Donegal Group pays an annual dividend of $0.50 per share and has a dividend yield of 4.2%. American International Group pays out 53.3% of its earnings in the form of a dividend.
This is a summary of recent recommendations for American International Group and Donegal Group, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|American International Group||0||2||10||0||2.83|
American International Group currently has a consensus target price of $57.86, suggesting a potential upside of 38.88%. Given American International Group’s higher possible upside, research analysts plainly believe American International Group is more favorable than Donegal Group.
This table compares American International Group and Donegal Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|American International Group||-12.73%||3.44%||0.43%|
Volatility and Risk
American International Group has a beta of 1.38, indicating that its share price is 38% more volatile than the S&P 500. Comparatively, Donegal Group has a beta of 0.49, indicating that its share price is 51% less volatile than the S&P 500.
Valuation and Earnings
This table compares American International Group and Donegal Group’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|American International Group||$49.52 billion||0.74||-$6.08 billion||$2.40||17.36|
|Donegal Group||$739.03 million||0.45||$7.11 million||N/A||N/A|
Donegal Group has lower revenue, but higher earnings than American International Group.
Insider and Institutional Ownership
89.2% of American International Group shares are owned by institutional investors. Comparatively, 1.6% of Donegal Group shares are owned by institutional investors. 0.1% of American International Group shares are owned by insiders. Comparatively, 7.2% of Donegal Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
American International Group beats Donegal Group on 8 of the 13 factors compared between the two stocks.
American International Group Company Profile
American International Group, Inc. provides insurance products for commercial, institutional, and individual customers primarily in the United States, Europe, and Japan. The company's General Insurance segment offers general liability, environmental, commercial automobile liability, workers' compensation, excess casualty, and crisis management insurance products, as well as various risk-sharing and other customized structured programs; commercial, industrial, and energy-related property insurance; and aerospace, political risk, trade credit, portfolio solutions, surety, and marine insurance. It also provides professional liability insurance products for a range of businesses and risks, including directors and officer's liability, mergers and acquisitions, fidelity, employment practices, fiduciary liability, cyber risk, kidnap and ransom, and errors and omissions insurance. In addition, this segment offers personal auto and property insurance, voluntary and sponsor-paid personal accident, and supplemental health products; extended warranty insurance products; and travel insurance products. Its Life and Retirement segment offers variable annuities, fixed index and fixed annuities, and retail mutual funds; group mutual funds, fixed annuities, and variable annuities, as well as individual annuity and investment products, and financial planning and advisory services; and term life and universal life insurance. This segment also provides stable value wrap products, and structured settlement and pension risk transfer annuities; and corporate- and bank-owned life insurance and guaranteed investment contracts. This segment sells its products through independent marketing organizations, independent insurance agents, financial advisors, direct marketing, banks, wirehouses, and broker-dealers. The company's Legacy Portfolio segment offers legacy insurance products. American International Group, Inc. was founded in 1919 and is headquartered in New York, New York.
Donegal Group Company Profile
Donegal Group Inc., an insurance holding company, provides property and casualty insurance to businesses and individuals in the Mid-Atlantic, Midwestern, New England, and southern states. It operates through four segments: Investment Function, Personal Lines of Insurance, Commercial Lines of Insurance, and Investment in DFSC. The company offers private passenger automobile policies that provide protection against liability for bodily injury and property damage arising from automobile accidents, as well as protection against loss from damage to automobiles. It also offers homeowners policies, which provide coverage for damage to residences and their contents from a range of perils, including fire, lightning, windstorm, and theft; and liability of the insured arising from injury to other persons or their property. In addition, the company offers commercial automobile policies that provide protection against liability for bodily injury and property damage arising from automobile accidents and protection against loss from damage to automobiles owned by the insured; commercial multi-peril policies that provide protection to businesses against various perils, primarily combining liability and physical damage coverages; and workers' compensation policies, which provide benefits to employees for injuries sustained during employment. Donegal Group Inc., through its interest in Donegal Financial Services Corporation, operates a savings bank. The company markets its insurance products through a network of approximately 2,400 independent insurance agencies. Donegal Group Inc. was founded in 1986 and is headquartered in Marietta, Pennsylvania. Donegal Group Inc. is a subsidiary of Donegal Mutual Insurance Company.
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