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AIG vs. ARCC: A Head-to-Head Stock Comparison

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Here’s a clear look at AIG and ARCC, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Profile

SymbolAIGARCC
Company NameAmerican International Group, Inc.Ares Capital Corporation
CountryUnited StatesUnited States
GICS SectorFinancialsFinancials
GICS IndustryInsuranceCapital Markets
Market Capitalization44.89 billion USD14.21 billion USD
ExchangeNYSENasdaqGS
Listing DateJanuary 2, 1973October 5, 2004
Security TypeCommon StockCommon Stock

Historical Performance

This chart compares the performance of AIG and ARCC by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period. Data is adjusted for dividends and splits.

AIG vs. ARCC: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolAIGARCC
5-Day Price Return4.01%-1.42%
13-Week Price Return-2.60%-10.08%
26-Week Price Return-6.81%-9.07%
52-Week Price Return11.83%-3.31%
Month-to-Date Return3.16%-1.27%
Year-to-Date Return11.29%-7.95%
10-Day Avg. Volume3.91M5.92M
3-Month Avg. Volume4.38M4.03M
3-Month Volatility17.49%15.43%
Beta0.650.64

Profitability

Return on Equity (TTM)

AIG

7.51%

Insurance Industry

Max
30.96%
Q3
18.76%
Median
14.22%
Q1
10.34%
Min
1.73%

AIG’s Return on Equity of 7.51% is in the lower quartile for the Insurance industry. This indicates a less efficient generation of profit from its equity base when compared to its competitors.

ARCC

10.05%

Capital Markets Industry

Max
38.97%
Q3
22.24%
Median
13.52%
Q1
8.61%
Min
-4.25%

ARCC’s Return on Equity of 10.05% is on par with the norm for the Capital Markets industry, indicating its profitability relative to shareholder equity is typical for the sector.

AIG vs. ARCC: A comparison of their Return on Equity (TTM) against their respective Insurance and Capital Markets industry benchmarks.

Net Profit Margin (TTM)

AIG

11.51%

Insurance Industry

Max
26.78%
Q3
14.69%
Median
9.87%
Q1
6.59%
Min
-3.51%

AIG’s Net Profit Margin of 11.51% is aligned with the median group of its peers in the Insurance industry. This indicates its ability to convert revenue into profit is typical for the sector.

ARCC

44.94%

Capital Markets Industry

Max
69.91%
Q3
37.24%
Median
24.30%
Q1
13.06%
Min
-15.18%

A Net Profit Margin of 44.94% places ARCC in the upper quartile for the Capital Markets industry, signifying strong profitability and more effective cost management than most of its peers.

AIG vs. ARCC: A comparison of their Net Profit Margin (TTM) against their respective Insurance and Capital Markets industry benchmarks.

Operating Profit Margin (TTM)

AIG

18.39%

Insurance Industry

Max
34.52%
Q3
20.17%
Median
14.46%
Q1
9.62%
Min
-2.51%

In the Insurance industry, Operating Profit Margin is often not the primary measure of operational efficiency.

ARCC

48.72%

Capital Markets Industry

Max
84.86%
Q3
47.16%
Median
32.23%
Q1
18.65%
Min
-21.87%

An Operating Profit Margin of 48.72% places ARCC in the upper quartile for the Capital Markets industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

AIG vs. ARCC: A comparison of their Operating Profit Margin (TTM) against their respective Insurance and Capital Markets industry benchmarks.

Profitability at a Glance

SymbolAIGARCC
Return on Equity (TTM)7.51%10.05%
Return on Assets (TTM)1.94%4.80%
Net Profit Margin (TTM)11.51%44.94%
Operating Profit Margin (TTM)18.39%48.72%
Gross Profit Margin (TTM)--50.28%

Financial Strength

Current Ratio (MRQ)

AIG

0.04

Insurance Industry

Max
2.97
Q3
1.37
Median
0.54
Q1
0.15
Min
0.00

For the Insurance industry, the Current Ratio is often not the most suitable measure of short-term liquidity.

ARCC

1.07

Capital Markets Industry

Max
3.37
Q3
1.81
Median
1.01
Q1
0.56
Min
0.04

For the Capital Markets industry, the Current Ratio is often not the most suitable measure of short-term liquidity.

AIG vs. ARCC: A comparison of their Current Ratio (MRQ) against their respective Insurance and Capital Markets industry benchmarks.

Debt-to-Equity Ratio (MRQ)

AIG

0.22

Insurance Industry

Max
1.25
Q3
0.65
Median
0.34
Q1
0.23
Min
0.00

The Debt-to-Equity Ratio is often not the primary focus for assessing leverage in the Insurance industry.

ARCC

1.01

Capital Markets Industry

Max
6.52
Q3
2.79
Median
0.96
Q1
0.28
Min
0.00

The Debt-to-Equity Ratio is often not the primary focus for assessing leverage in the Capital Markets industry.

AIG vs. ARCC: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Insurance and Capital Markets industry benchmarks.

Interest Coverage Ratio (TTM)

AIG

9.38

Insurance Industry

Max
43.68
Q3
21.45
Median
9.67
Q1
3.55
Min
-5.73

The Interest Coverage Ratio is often not a primary indicator of debt servicing capacity in the Insurance industry.

ARCC

2.48

Capital Markets Industry

Max
107.59
Q3
48.41
Median
10.85
Q1
4.56
Min
-36.26

The Interest Coverage Ratio is often not a primary indicator of debt servicing capacity in the Capital Markets industry.

AIG vs. ARCC: A comparison of their Interest Coverage Ratio (TTM) against their respective Insurance and Capital Markets industry benchmarks.

Financial Strength at a Glance

SymbolAIGARCC
Current Ratio (MRQ)0.041.07
Quick Ratio (MRQ)0.041.07
Debt-to-Equity Ratio (MRQ)0.221.01
Interest Coverage Ratio (TTM)9.382.48

Growth

Revenue Growth

AIG vs. ARCC: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

AIG vs. ARCC: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

AIG

2.22%

Insurance Industry

Max
9.80%
Q3
5.18%
Median
3.58%
Q1
2.07%
Min
0.00%

AIG’s Dividend Yield of 2.22% is consistent with its peers in the Insurance industry, providing a dividend return that is standard for its sector.

ARCC

8.45%

Capital Markets Industry

Max
9.02%
Q3
4.54%
Median
2.55%
Q1
1.27%
Min
0.00%

With a Dividend Yield of 8.45%, ARCC offers a more attractive income stream than most of its peers in the Capital Markets industry, signaling a strong commitment to shareholder returns.

AIG vs. ARCC: A comparison of their Dividend Yield (TTM) against their respective Insurance and Capital Markets industry benchmarks.

Dividend Payout Ratio (TTM)

AIG

30.82%

Insurance Industry

Max
169.40%
Q3
85.57%
Median
53.26%
Q1
23.68%
Min
0.00%

AIG’s Dividend Payout Ratio of 30.82% is within the typical range for the Insurance industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

ARCC

89.80%

Capital Markets Industry

Max
199.38%
Q3
99.28%
Median
60.67%
Q1
32.00%
Min
0.00%

ARCC’s Dividend Payout Ratio of 89.80% is within the typical range for the Capital Markets industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

AIG vs. ARCC: A comparison of their Dividend Payout Ratio (TTM) against their respective Insurance and Capital Markets industry benchmarks.

Dividend at a Glance

SymbolAIGARCC
Dividend Yield (TTM)2.22%8.45%
Dividend Payout Ratio (TTM)30.82%89.80%

Valuation

Price-to-Earnings Ratio (TTM)

AIG

13.90

Insurance Industry

Max
30.75
Q3
18.11
Median
12.67
Q1
9.66
Min
2.87

AIG’s P/E Ratio of 13.90 is within the middle range for the Insurance industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

ARCC

10.63

Capital Markets Industry

Max
51.69
Q3
29.42
Median
17.58
Q1
12.55
Min
5.59

In the lower quartile for the Capital Markets industry, ARCC’s P/E Ratio of 10.63 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.

AIG vs. ARCC: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Insurance and Capital Markets industry benchmarks.

Price-to-Sales Ratio (TTM)

AIG

1.60

Insurance Industry

Max
3.41
Q3
1.88
Median
1.22
Q1
0.80
Min
0.23

AIG’s P/S Ratio of 1.60 aligns with the market consensus for the Insurance industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

ARCC

4.78

Capital Markets Industry

Max
14.65
Q3
7.29
Median
4.53
Q1
2.26
Min
0.04

ARCC’s P/S Ratio of 4.78 aligns with the market consensus for the Capital Markets industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

AIG vs. ARCC: A comparison of their Price-to-Sales Ratio (TTM) against their respective Insurance and Capital Markets industry benchmarks.

Price-to-Book Ratio (MRQ)

AIG

1.19

Insurance Industry

Max
4.57
Q3
2.56
Median
1.88
Q1
1.20
Min
0.17

AIG’s P/B Ratio of 1.19 is in the lower quartile for the Insurance industry. From a value investing perspective, this is favorable, as it suggests the stock is trading at a discount to its net asset value and may offer a greater margin of safety.

ARCC

1.09

Capital Markets Industry

Max
10.83
Q3
5.12
Median
2.66
Q1
1.19
Min
0.37

ARCC’s P/B Ratio of 1.09 is in the lower quartile for the Capital Markets industry. From a value investing perspective, this is favorable, as it suggests the stock is trading at a discount to its net asset value and may offer a greater margin of safety.

AIG vs. ARCC: A comparison of their Price-to-Book Ratio (MRQ) against their respective Insurance and Capital Markets industry benchmarks.

Valuation at a Glance

SymbolAIGARCC
Price-to-Earnings Ratio (TTM)13.9010.63
Price-to-Sales Ratio (TTM)1.604.78
Price-to-Book Ratio (MRQ)1.191.09
Price-to-Free Cash Flow Ratio (TTM)13.3715.67