Financial Analysis: Palomar (NASDAQ:PLMR) and American International Group (NASDAQ:AIG)
Palomar (NASDAQ:PLMR) and American International Group (NYSE:AIG) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, earnings, institutional ownership, valuation, risk, analyst recommendations and dividends.
Risk & Volatility
Palomar has a beta of -0.13, suggesting that its share price is 113% less volatile than the S&P 500. Comparatively, American International Group has a beta of 1.44, suggesting that its share price is 44% more volatile than the S&P 500.
This is a summary of current recommendations and price targets for Palomar and American International Group, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|American International Group||0||6||10||0||2.63|
Palomar currently has a consensus target price of $70.50, suggesting a potential downside of 30.62%. American International Group has a consensus target price of $42.29, suggesting a potential upside of 36.67%. Given American International Group’s higher probable upside, analysts plainly believe American International Group is more favorable than Palomar.
Insider & Institutional Ownership
80.2% of Palomar shares are owned by institutional investors. Comparatively, 90.1% of American International Group shares are owned by institutional investors. 7.7% of Palomar shares are owned by insiders. Comparatively, 0.2% of American International Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Valuation & Earnings
This table compares Palomar 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|
|Palomar||$113.30 million||22.84||$10.62 million||$1.73||58.73|
|American International Group||$49.75 billion||0.54||$3.35 billion||$4.59||6.74|
American International Group has higher revenue and earnings than Palomar. American International Group is trading at a lower price-to-earnings ratio than Palomar, indicating that it is currently the more affordable of the two stocks.
This table compares Palomar and American International Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|American International Group||-9.46%||3.28%||0.40%|
Palomar Company Profile
There is no company description available for Palomar Holdings Inc.
American International Group Company Profile
American International Group, Inc. provides insurance products for commercial, institutional, and individual customers in North America and internationally. 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, crop, 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.
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