Fidelis Insurance (NYSE:FIHL) and American International Group (NYSE:AIG) Financial Comparison

Fidelis Insurance (NYSE:FIHL) and American International Group (NYSE:AIG) are both finance companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, profitability, valuation, earnings, risk and dividends.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Fidelis Insurance	9.02%	8.62%	1.62%
American International Group	11.86%	10.73%	2.70%

Dividends

Fidelis Insurance pays an annual dividend of $0.60 per share and has a dividend yield of 2.1%. American International Group pays an annual dividend of $2.00 per share and has a dividend yield of 2.4%. Fidelis Insurance pays out 27.1% of its earnings in the form of a dividend. American International Group pays out 32.6% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. American International Group has raised its dividend for 3 consecutive years. American International Group is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a summary of current ratings and recommmendations for Fidelis Insurance and American International Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fidelis Insurance	2	2	3	0	2.14
American International Group	0	10	8	0	2.44

Fidelis Insurance currently has a consensus price target of $21.92, indicating a potential downside of 22.56%. American International Group has a consensus price target of $87.84, indicating a potential upside of 6.64%. Given American International Group’s stronger consensus rating and higher probable upside, analysts clearly believe American International Group is more favorable than Fidelis Insurance.

Insider & Institutional Ownership

82.0% of Fidelis Insurance shares are owned by institutional investors. Comparatively, 90.6% of American International Group shares are owned by institutional investors. 0.6% of American International Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Volatility & Risk

Fidelis Insurance has a beta of 0.36, indicating that its stock price is 64% less volatile than the S&P 500. Comparatively, American International Group has a beta of 0.48, indicating that its stock price is 52% less volatile than the S&P 500.

Valuation and Earnings

This table compares Fidelis Insurance and American International Group”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fidelis Insurance	$2.17 billion	1.26	$225.50 million	$2.21	12.81
American International Group	$26.77 billion	1.61	$3.10 billion	$6.14	13.42

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

Summary

American International Group beats Fidelis Insurance on 16 of the 17 factors compared between the two stocks.

About Fidelis Insurance

Fidelis Insurance Holdings Limited is a Bermuda-based specialty insurer and reinsurer that provides coverage for complex and evolving risks. The company operates internationally, working with brokers and clients across a range of markets. Its offerings include property, energy, marine, aviation, and specialty insurance and reinsurance, as well as coverage for risks such as political violence and cyber events. Its underwriting businesses serve commercial and institutional customers seeking tailored protection.

About American International Group

American International Group, Inc. (AIG) is a global insurance company headquartered in New York. Founded in Shanghai in 1919, the company has grown into an insurer serving businesses and individuals in the United States and international markets. AIG’s principal business is general insurance, including commercial and personal property and casualty coverage. Its offerings include products and services for businesses, multinational organizations and individuals, with coverage spanning areas such as property, liability, accident and specialty risks.