Critical Review: Baldwin & Lyons Inc Class B (BWINB) versus American International Group (AIG)
Baldwin & Lyons Inc Class B (NASDAQ:BWINB) and American International Group (NYSE:AIG) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, risk, valuation, profitability, earnings, analyst recommendations and institutional ownership.
Baldwin & Lyons Inc Class B pays an annual dividend of $1.12 per share and has a dividend yield of 4.8%. American International Group pays an annual dividend of $1.28 per share and has a dividend yield of 2.5%. American International Group pays out 109.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Baldwin & Lyons Inc Class B has raised its dividend for 3 consecutive years. Baldwin & Lyons Inc Class B is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This is a breakdown of current ratings and price targets for Baldwin & Lyons Inc Class B and American International Group, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Baldwin & Lyons Inc Class B||0||0||0||0||N/A|
|American International Group||0||3||7||0||2.70|
American International Group has a consensus price target of $54.50, suggesting a potential upside of 4.41%. Given American International Group’s higher possible upside, analysts plainly believe American International Group is more favorable than Baldwin & Lyons Inc Class B.
This table compares Baldwin & Lyons Inc Class B and American International Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Baldwin & Lyons Inc Class B||N/A||N/A||N/A|
|American International Group||-0.60%||2.48%||0.30%|
Insider and Institutional Ownership
47.5% of Baldwin & Lyons Inc Class B shares are owned by institutional investors. Comparatively, 90.1% of American International Group shares are owned by institutional investors. 38.1% of Baldwin & Lyons Inc Class B shares are owned by company insiders. Comparatively, 0.1% of American International Group shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Valuation & Earnings
This table compares Baldwin & Lyons Inc Class B and American International Group’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Baldwin & Lyons Inc Class B||N/A||N/A||N/A||N/A||N/A|
|American International Group||$47.39 billion||0.96||-$6.00 million||$1.17||44.62|
Baldwin & Lyons Inc Class B has higher earnings, but lower revenue than American International Group.
American International Group beats Baldwin & Lyons Inc Class B on 6 of the 11 factors compared between the two stocks.
Baldwin & Lyons Inc Class B Company Profile
Baldwin & Lyons, Inc., through its subsidiaries, engages in marketing and underwriting property and casualty insurance products. The company offers a range of fleet transportation insurance products, including commercial motor vehicle liability, physical damage, and general liability insurance; workers compensation insurance; medical and indemnity insurance products; non-trucking motor vehicle liability insurance; fidelity and surety bonds; and inland marine products consisting of cargo insurance. It also provides various additional services, such as risk surveys and analyses, safety program design and monitoring, government compliance assistance, loss control, and cost studies; research, development, and consultation in connection with new insurance programs that comprise development of systems to assist customers in monitoring their accident data; and claims handling services to clients with self-insurance programs. It serves trucking and public transportation fleets, as well as independent contractors in the trucking industry. The company primarily operates in the United States, Canada, Bermuda, and Puerto Rico. Baldwin & Lyons, Inc. was founded in 1930 and is headquartered in Carmel, Indiana.
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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