American International Group (NYSE:AIG) and M�nchener R�ckversicherungs-Gesellschaft (OTCMKTS:MURGY) Head to Head Comparison

American International Group (NYSE:AIG) and M�nchener R�ckversicherungs-Gesellschaft (OTCMKTS:MURGY) are both large-cap finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, risk, earnings, dividends, valuation, profitability and analyst recommendations.

Volatility and Risk

American International Group has a beta of 0.62, meaning that its share price is 38% less volatile than the S&P 500. Comparatively, M�nchener R�ckversicherungs-Gesellschaft has a beta of 0.53, meaning that its share price is 47% less volatile than the S&P 500.

Dividends

American International Group pays an annual dividend of $1.80 per share and has a dividend yield of 2.3%. M�nchener R�ckversicherungs-Gesellschaft pays an annual dividend of $0.26 per share and has a dividend yield of 2.1%. American International Group pays out 32.7% of its earnings in the form of a dividend. M�nchener R�ckversicherungs-Gesellschaft pays out 14.8% 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.

Profitability

This table compares American International Group and M�nchener R�ckversicherungs-Gesellschaft’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
American International Group	11.89%	9.09%	2.32%
M�nchener R�ckversicherungs-Gesellschaft	10.34%	19.63%	2.22%

Valuation & Earnings

This table compares American International Group and M�nchener R�ckversicherungs-Gesellschaft”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
American International Group	$27.25 billion	1.53	-$1.40 billion	$5.50	14.05
M�nchener R�ckversicherungs-Gesellschaft	$65.83 billion	1.23	$6.15 billion	$1.76	7.07

M�nchener R�ckversicherungs-Gesellschaft has higher revenue and earnings than American International Group. M�nchener R�ckversicherungs-Gesellschaft 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.

Insider & Institutional Ownership

90.6% of American International Group shares are held by institutional investors. Comparatively, 0.2% of M�nchener R�ckversicherungs-Gesellschaft shares are held by institutional investors. 0.5% of American International Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and recommmendations for American International Group and M�nchener R�ckversicherungs-Gesellschaft, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
American International Group	0	11	8	2	2.57
M�nchener R�ckversicherungs-Gesellschaft	0	3	0	1	2.50

American International Group presently has a consensus target price of $89.44, suggesting a potential upside of 15.76%. Given American International Group’s stronger consensus rating and higher possible upside, equities analysts clearly believe American International Group is more favorable than M�nchener R�ckversicherungs-Gesellschaft.

Summary

American International Group beats M�nchener R�ckversicherungs-Gesellschaft on 14 of the 18 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 M�nchener R�ckversicherungs-Gesellschaft

Münchener Rückversicherungs-Gesellschaft Aktiengesellschaft in München engages in the insurance and reinsurance businesses worldwide. It also offers life and health reinsurance solutions, such as digital underwriting and advanced analytics solutions, health insurance management system, financial market risks, financing, portfolio risk management, digitalized investment-linked solution, MIRA digital suite, MIRA POS, MIRApply insured and physician, claims risk adjustment, CLARA plus, data analytics, underwriting and claims, medical research, capital management, and health market. The company also provides property and casualty reinsurance solutions, including agricultural risk, data analytics, infrastructure risk profiler, property insurance, retroactive reinsurance, insurance linked securities, location risk, risk transfer, and cyber, NatCatSERVICE for natural catastrophe loss database, REALYTIX ZERO, IMPROVEX, and cert2go, as well as consulting services for reinsurance, business advisory, portfolio performance and management, claims management, commercial motor, telematics, and electric vehicles. In addition, the company provides solutions for industry clients, such as IoT cover, earnings quality insurance protection, captive insurance and risk transfer, liability, weather risks, space and satellite insurance, solar and biomass insurance, wind insurance, digital asset, mining risks cover, construction projects covers and services, aviation insurance, power and utilities, industrial cyber insurance, risk suite, location risk intelligence, digital risks, PV warranty insurance, parametric, Insure AI, e-mobility, circular economy, liquidation damage cover, and natural catastrophes solutions. Further, it offers life, property-casualty, health, legal protection, and travel insurance products under the ERGO brand name; and insurance solutions for agriculture, captive, epidemic, cyber, and renewable energy. The company was founded in 1880 and is based in Munich, Germany.