AIG vs. ARES: A Head-to-Head Stock Comparison
UpdatedHere’s a clear look at AIG and ARES, comparing key factors like performance, valuation metrics, dividends, and financial strength.
Company Overview
AIG’s market capitalization stands at 49.23 billion USD, while ARES’s is 36.54 billion USD, indicating their market valuations are broadly comparable.
ARES carries a higher beta at 1.40, indicating it’s more sensitive to market moves, while AIG (beta: 0.66) exhibits greater stability.
| Symbol | AIG | ARES |
|---|---|---|
| Company Name | American International Group, Inc. | Ares Management Corporation |
| Country | US | US |
| Sector | Financial Services | Financial Services |
| Industry | Insurance - Diversified | Asset Management |
| CEO | Mr. Peter Salvatore Zaffino | Mr. Michael J. Arougheti |
| Price | 85.42 USD | 169.99 USD |
| Market Cap | 49.23 billion USD | 36.54 billion USD |
| Beta | 0.66 | 1.40 |
| Exchange | NYSE | NYSE |
| IPO Date | January 2, 1973 | May 2, 2014 |
| ADR | No | No |
Performance Comparison
This chart compares the performance of AIG and ARES over the past year by tracking the growth of an initial $10,000 investment in each (starting one year ago).
Data is adjusted for dividends and splits.
- AIG: $11478.10 (14.78%)
- ARES: $12751.48 (27.51%)
Valuation Metrics Comparison
This section compares the market valuation of AIG and ARES. Key takeaways regarding their valuation, when viewed within their industry context, are presented in the commentary that follows.
- AIG’s Price-to-Earnings (P/E) ratio of -31.94 indicates negative earnings, signaling current unprofitability. ARES, with a very high P/E ratio of 69.21, appears to have a valuation that either is significantly stretched or reflects high expectations for substantial future growth.
- ARES’s Price-to-Book (P/B) ratio of 7.99 is very high. This suggests that investors are valuing its assets and growth potential at a considerable premium to its stated book value, often due to strong return on equity, significant intangible assets, or optimistic growth forecasts.
| Symbol | AIG | ARES |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | -31.94 | 69.21 |
| Forward PEG Ratio (TTM) | -1.68 | 3.12 |
| Price-to-Sales Ratio (P/S, TTM) | 1.81 | 7.43 |
| Price-to-Book Ratio (P/B, TTM) | 1.48 | 7.99 |
| EV-to-EBITDA (TTM) | 7.49 | 22.35 |
| EV-to-Sales (TTM) | 2.07 | 7.45 |
Dividend Comparison
Both AIG and ARES offer dividend yields in a similar range (1.87% and 2.30%, respectively), indicating comparable approaches to shareholder distributions.
| Symbol | AIG | ARES |
|---|---|---|
| Dividend Yield (TTM) | 1.87% | 2.30% |
Financial Strength Metrics Comparison
Explore the financial strength details for AIG and ARES in the table below.
| Symbol | AIG | ARES |
|---|---|---|
| Current Ratio (TTM) | -- | 0.90 |
| Quick Ratio (TTM) | -- | 0.90 |
| Debt-to-Equity Ratio (TTM) | 0.21 | 0.15 |
| Debt-to-Asset Ratio (TTM) | 0.05 | 0.03 |
| Net Debt-to-EBITDA Ratio (TTM) | 0.96 | 0.04 |
| Interest Coverage Ratio (TTM) | 8.29 | 1.95 |