Greenlight Capital Re (NASDAQ:GLRE – Get Rating) and American International Group (NYSE:AIG – Get Rating) are both finance companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, risk, earnings, institutional ownership, dividends, valuation and profitability.
Profitability
This table compares Greenlight Capital Re and American International Group's net margins, return on equity and return on assets.
Get Greenlight Capital Re alerts:| Net Margins | Return on Equity | Return on Assets | |
| Greenlight Capital Re | 3.50% | 4.15% | 1.35% |
| American International Group | 22.23% | 7.12% | 0.73% |
Volatility and Risk
Greenlight Capital Re has a beta of 1, suggesting that its stock price has a similar volatility profile to the S&P 500.Comparatively, American International Group has a beta of 1.17, suggesting that its stock price is 17% more volatile than the S&P 500.
Valuation and Earnings
This table compares Greenlight Capital Re 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 | |
| Greenlight Capital Re | $588.55 million | 0.45 | $17.58 million | $0.49 | 15.61 |
| American International Group | $52.06 billion | 0.75 | $9.39 billion | $15.23 | 3.36 |
American International Group has higher revenue and earnings than Greenlight Capital Re. American International Group is trading at a lower price-to-earnings ratio than Greenlight Capital Re, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for Greenlight Capital Re and American International Group, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Greenlight Capital Re | 0 | 0 | 0 | 0 | N/A |
| American International Group | 0 | 5 | 2 | 0 | 2.29 |
American International Group has a consensus target price of $65.29, suggesting a potential upside of 27.49%. Given American International Group's higher probable upside, analysts plainly believe American International Group is more favorable than Greenlight Capital Re.
Institutional & Insider Ownership
43.4% of Greenlight Capital Re shares are held by institutional investors. Comparatively, 90.2% of American International Group shares are held by institutional investors. 25.3% of Greenlight Capital Re shares are held by company insiders. Comparatively, 0.3% of American International Group shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Summary
American International Group beats Greenlight Capital Re on 10 of the 13 factors compared between the two stocks.
About Greenlight Capital Re
(Get Rating)
Greenlight Capital Re, Ltd., through its subsidiaries, operates as a property and casualty reinsurance company worldwide. The company offers various property reinsurance products and services, including automobile physical damage, personal lines, and commercial lines. It also provides casualty reinsurance products and services comprising general liability, motor liability, professional liability, and worker's compensation; and accident and health, transactional liability, mortgage insurance, surety, trade credit, marine, energy, aviation, crop, cyber, political, and terrorism products. The company markets its products through reinsurance brokers. Greenlight Capital Re, Ltd. was incorporated in 2004 and is headquartered in Grand Cayman, the Cayman Islands.
About American International Group
(Get Rating)
American International Group, Inc. offers insurance products for commercial, institutional, and individual customers in North America and internationally. The company's General Insurance segment provides general liability, environmental, commercial automobile liability, workers' compensation, casualty, and crisis management insurance products; commercial, industrial, and energy-related property insurance; and aerospace, political risk, trade credit, portfolio solutions, crop, and marine insurance. It also provides professional liability insurance products for a range of businesses and risks, including directors and officers, 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, such as auto, homeowners, umbrella, yacht, fine art, and collections; voluntary and sponsor-paid personal accident; supplemental health products; extended warranty insurance products; and travel insurance products. Its Life and Retirement segment offers variable annuities, index and fixed annuities, and retail mutual funds; and financial planning and advisory services; record-keeping, plan administrative, and compliance services; and term life and universal life insurance. It 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, and broker-dealers. The company was founded in 1919 and is headquartered in New York, New York.
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