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

Analyst Recommendations

This is a summary of current recommendations and price targets for American International Group and Brighthouse Financial, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
American International Group 1 6 9 0 2.50
Brighthouse Financial 2 12 2 0 2.00

American International Group currently has a consensus target price of $66.54, suggesting a potential upside of 11.96%. Brighthouse Financial has a consensus target price of $66.43, suggesting a potential upside of 24.03%. Given Brighthouse Financial’s higher possible upside, analysts plainly believe Brighthouse Financial is more favorable than American International Group.

Valuation and Earnings

This table compares American International Group and Brighthouse Financial’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 $52.37 billion 1.02 -$6.08 billion ($2.49) -23.87
Brighthouse Financial N/A N/A N/A ($23.47) -2.28

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

Dividends

American International Group pays an annual dividend of $1.28 per share and has a dividend yield of 2.2%. Brighthouse Financial does not pay a dividend. American International Group pays out -51.4% of its earnings in the form of a dividend.

Institutional & Insider Ownership

85.6% of American International Group shares are held by institutional investors. Comparatively, 81.2% of Brighthouse Financial shares are held by institutional investors. 0.5% of American International Group 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 Brighthouse Financial’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
American International Group -5.07% 3.02% 0.45%
Brighthouse Financial N/A N/A N/A

Summary

American International Group beats Brighthouse Financial on 10 of the 13 factors compared between the two stocks.

American International Group Company Profile

American International Group, Inc. is a global insurance company. The Company provides a range of property casualty insurance, life insurance, retirement products and other financial services to commercial and individual customers. Its segments include Commercial Insurance, Consumer Insurance, Other Operations and Legacy Portfolio. The Commercial Insurance segment is a provider of insurance products and services for commercial customers. It includes property casualty networks. The Consumer Insurance segment is a franchise that brings together a portfolio of retirement, life insurance and personal insurance products offered through multiple distribution networks. The Other Operations segment consists of businesses and items not attributed to its Commercial and Consumer modules or its Legacy Portfolio. The Legacy Portfolio segment includes Legacy Property and Casualty Run-Off Insurance Lines, as well as Legacy Life Insurance Run-Off Lines and Legacy Investments.

Brighthouse Financial Company Profile

Brighthouse Financial, Inc. is a provider of life insurance and annuity products in the United States. The Company offers a range of products and services, which include variable, fixed, index-linked and income annuities, as well as variable, universal, term and whole life products. These products and services are marketed through various third party retail distribution channels in the United States. Fixed income annuities provide a guaranteed monthly income for a specified period of years and/or for the life of the annuitant. The Company operating segments include Annuities, Life and Run-off.

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