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

Updated on July 7, 2025

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

Company Overview

BAC’s market capitalization of 368.53 billion USD is significantly greater than AIG’s 47.94 billion USD, highlighting its more substantial market valuation.

BAC carries a higher beta at 1.31, indicating it’s more sensitive to market moves, while AIG (beta: 0.66) exhibits greater stability.

Symbol	AIG	BAC
Company Name	American International Group, Inc.	Bank of America Corporation
Country	US	US
Sector	Financial Services	Financial Services
Industry	Insurance - Diversified	Banks - Diversified
CEO	Peter Salvatore Zaffino	Brian Thomas Moynihan
Price	83.18 USD	48.93 USD
Market Cap	47.94 billion USD	368.53 billion USD
Beta	0.66	1.31
Exchange	NYSE	NYSE
IPO Date	January 2, 1973	February 21, 1973
ADR	No	No

Historical Performance

This chart compares the performance of AIG and BAC 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. BAC: Growth of a $10,000 investment over the past one year.

Profitability

Return on Equity

AIG

-4.43%

Insurance - Diversified Industry

Max: 19.59%
Q3: 17.66%
Median: 12.77%
Q1: 7.56%
Min: -4.43%

AIG has a negative Return on Equity of -4.43%. This indicates the company is generating a loss for its shareholders, which can be a result of unprofitability or negative shareholder equity and is often a sign of financial distress.

BAC

9.43%

Banks - Diversified Industry

Max: 20.93%
Q3: 14.73%
Median: 12.33%
Q1: 9.14%
Min: 5.86%

BAC’s Return on Equity of 9.43% is on par with the norm for the Banks - Diversified industry, indicating its profitability relative to shareholder equity is typical for the sector.

AIG vs. BAC: A comparison of their ROE against their respective Insurance - Diversified and Banks - Diversified industry benchmarks.

Return on Invested Capital

AIG

10.39%

Insurance - Diversified Industry

Max: 32.46%
Q3: 16.21%
Median: 9.46%
Q1: 2.09%
Min: -10.51%

Return on Invested Capital is often not a primary measure of capital efficiency in the Insurance - Diversified industry.

BAC

2.22%

Banks - Diversified Industry

Max: 4.52%
Q3: 2.95%
Median: 1.89%
Q1: 0.86%
Min: 0.18%

Return on Invested Capital is often not a primary measure of capital efficiency in the Banks - Diversified industry.

AIG vs. BAC: A comparison of their ROIC against their respective Insurance - Diversified and Banks - Diversified industry benchmarks.

Net Profit Margin

AIG

-7.05%

Insurance - Diversified Industry

Max: 26.00%
Q3: 19.46%
Median: 9.37%
Q1: 5.55%
Min: -7.05%

AIG has a negative Net Profit Margin of -7.05%, indicating the company is operating at a net loss as its expenses exceeded its revenues.

BAC

14.56%

Banks - Diversified Industry

Max: 33.40%
Q3: 26.40%
Median: 19.24%
Q1: 14.99%
Min: 7.95%

Falling into the lower quartile for the Banks - Diversified industry, BAC’s Net Profit Margin of 14.56% indicates weaker profitability. This means the company retains a smaller portion of each dollar in sales as profit compared to its competitors.

AIG vs. BAC: A comparison of their Net Profit Margin against their respective Insurance - Diversified and Banks - Diversified industry benchmarks.

Operating Profit Margin

AIG

13.31%

Insurance - Diversified Industry

Max: 44.52%
Q3: 25.84%
Median: 14.16%
Q1: 6.78%
Min: -2.60%

AIG’s Operating Profit Margin of 13.31% is around the midpoint for the Insurance - Diversified industry, indicating that its efficiency in managing core business operations is typical for the sector.

BAC

15.73%

Banks - Diversified Industry

Max: 50.90%
Q3: 37.76%
Median: 28.44%
Q1: 15.73%
Min: 8.60%

BAC’s Operating Profit Margin of 15.73% is around the midpoint for the Banks - Diversified industry, indicating that its efficiency in managing core business operations is typical for the sector.

AIG vs. BAC: A comparison of their Operating Margin against their respective Insurance - Diversified and Banks - Diversified industry benchmarks.

Profitability at a Glance

Symbol	AIG	BAC
Return on Equity (TTM)	-4.43%	9.43%
Return on Assets (TTM)	-1.19%	0.83%
Return on Invested Capital (TTM)	10.39%	2.22%
Net Profit Margin (TTM)	-7.05%	14.56%
Operating Profit Margin (TTM)	13.31%	15.73%
Gross Profit Margin (TTM)	100.00%	50.93%

Financial Strength

Current Ratio

AIG

Insurance - Diversified Industry

Max: 4.41
Q3: 4.03
Median: 2.86
Q1: 2.82
Min: 2.82

Current Ratio data for AIG is currently unavailable.

BAC

0.50

Banks - Diversified Industry

Max: 0.67
Q3: 0.49
Median: 0.39
Q1: 0.28
Min: 0.06

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

AIG vs. BAC: A comparison of their Current Ratio against their respective Insurance - Diversified and Banks - Diversified industry benchmarks.

Debt-to-Equity Ratio

AIG

0.21

Insurance - Diversified Industry

Max: 0.54
Q3: 0.39
Median: 0.27
Q1: 0.21
Min: 0.13

AIG’s Debt-to-Equity Ratio of 0.21 is typical for the Insurance - Diversified industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

BAC

2.44

Banks - Diversified Industry

Max: 4.98
Q3: 3.65
Median: 3.13
Q1: 1.73
Min: 0.09

BAC’s Debt-to-Equity Ratio of 2.44 is typical for the Banks - Diversified industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

AIG vs. BAC: A comparison of their D/E Ratio against their respective Insurance - Diversified and Banks - Diversified industry benchmarks.

Interest Coverage Ratio

AIG

8.29

Insurance - Diversified Industry

Max: 19.23
Q3: 17.46
Median: 7.97
Q1: 4.61
Min: -1.63

AIG’s Interest Coverage Ratio of 8.29 is positioned comfortably within the norm for the Insurance - Diversified industry, indicating a standard and healthy capacity to cover its interest payments.

BAC

0.34

Banks - Diversified Industry

Max: 0.98
Q3: 0.78
Median: 0.55
Q1: 0.31
Min: 0.09

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

AIG vs. BAC: A comparison of their Interest Coverage against their respective Insurance - Diversified and Banks - Diversified industry benchmarks.

Financial Strength at a Glance

Symbol	AIG	BAC
Current Ratio (TTM)	--	0.50
Quick Ratio (TTM)	--	0.50
Debt-to-Equity Ratio (TTM)	0.21	2.44
Debt-to-Asset Ratio (TTM)	0.05	0.22
Net Debt-to-EBITDA Ratio (TTM)	0.96	13.64
Interest Coverage Ratio (TTM)	8.29	0.34

Growth

The following charts compare key year-over-year (YoY) growth metrics for AIG and BAC. These metrics are based on the companies’ annual financial reports.

Revenue Growth

AIG vs. BAC: A comparison of their annual year-over-year Revenue Growth.

Earnings Per Share (EPS) Growth

AIG vs. BAC: A comparison of their annual year-over-year Earnings Per Share (EPS) Growth.

Free Cash Flow Growth

AIG vs. BAC: A comparison of their annual year-over-year Free Cash Flow Growth.

Dividend

Dividend Yield

AIG

1.98%

Insurance - Diversified Industry

Max: 8.16%
Q3: 5.54%
Median: 2.46%
Q1: 1.59%
Min: 0.00%

AIG’s Dividend Yield of 1.98% is consistent with its peers in the Insurance - Diversified industry, providing a dividend return that is standard for its sector.

BAC

2.13%

Banks - Diversified Industry

Max: 7.73%
Q3: 4.16%
Median: 3.24%
Q1: 2.27%
Min: 0.00%

BAC’s Dividend Yield of 2.13% is in the lower quartile for the Banks - Diversified industry. This suggests the company’s strategy likely favors retaining earnings for growth over providing a high dividend income.

AIG vs. BAC: A comparison of their Dividend Yield against their respective Insurance - Diversified and Banks - Diversified industry benchmarks.

Dividend Payout Ratio

AIG

-51.66%

Insurance - Diversified Industry

Max: 101.86%
Q3: 53.36%
Median: 21.69%
Q1: 5.33%
Min: 0.00%

AIG has a negative Dividend Payout Ratio of -51.66%. This typically means the company paid a dividend despite reporting a net loss, a situation that may signal financial instability.

BAC

34.24%

Banks - Diversified Industry

Max: 84.94%
Q3: 39.11%
Median: 26.91%
Q1: 0.00%
Min: 0.00%

BAC’s Dividend Payout Ratio of 34.24% is within the typical range for the Banks - Diversified industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

AIG vs. BAC: A comparison of their Payout Ratio against their respective Insurance - Diversified and Banks - Diversified industry benchmarks.

Dividend at a Glance

Symbol	AIG	BAC
Dividend Yield (TTM)	1.98%	2.13%
Dividend Payout Ratio (TTM)	-51.66%	34.24%

Valuation

Price-to-Earnings Ratio

AIG

-25.70

Insurance - Diversified Industry

Max: 18.52
Q3: 16.13
Median: 13.33
Q1: 9.73
Min: 2.62

AIG has a negative P/E Ratio of -25.70. This occurs when a company has negative earnings (a net loss), making the ratio unsuitable for valuation analysis.

BAC

13.49

Banks - Diversified Industry

Max: 14.13
Q3: 13.37
Median: 11.90
Q1: 9.29
Min: 7.43

A P/E Ratio of 13.49 places BAC in the upper quartile for the Banks - Diversified industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.

AIG vs. BAC: A comparison of their P/E Ratio against their respective Insurance - Diversified and Banks - Diversified industry benchmarks.

Forward P/E to Growth Ratio

AIG

-1.34

Insurance - Diversified Industry

Max: 2.60
Q3: 2.07
Median: 1.20
Q1: 0.77
Min: 0.04

AIG has a negative Forward PEG Ratio of -1.34. This typically results from negative earnings or forecasts of declining future earnings, making the ratio not meaningful for valuation.

BAC

0.90

Banks - Diversified Industry

Max: 1.98
Q3: 1.41
Median: 1.15
Q1: 0.77
Min: 0.45

BAC’s Forward PEG Ratio of 0.90 is within the middle range of its peers in the Banks - Diversified industry. This suggests a reasonable balance between the stock’s price and its expected growth, aligning with sector valuation norms.

AIG vs. BAC: A comparison of their Forward PEG Ratio against their respective Insurance - Diversified and Banks - Diversified industry benchmarks.

Price-to-Sales Ratio

AIG

1.76

Insurance - Diversified Industry

Max: 3.08
Q3: 2.00
Median: 1.15
Q1: 1.07
Min: 0.38

AIG’s P/S Ratio of 1.76 aligns with the market consensus for the Insurance - Diversified industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

BAC

1.93

Banks - Diversified Industry

Max: 4.15
Q3: 2.92
Median: 2.29
Q1: 1.83
Min: 0.94

The P/S Ratio is often not a primary valuation tool in the Banks - Diversified industry.

AIG vs. BAC: A comparison of their P/S Ratio against their respective Insurance - Diversified and Banks - Diversified industry benchmarks.

Price-to-Book Ratio

AIG

1.19

Insurance - Diversified Industry

Max: 2.12
Q3: 1.80
Median: 1.59
Q1: 1.29
Min: 0.74

AIG’s P/B Ratio of 1.19 is in the lower quartile for the Insurance - Diversified 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.

BAC

1.27

Banks - Diversified Industry

Max: 1.89
Q3: 1.47
Median: 1.23
Q1: 1.10
Min: 0.65

BAC’s P/B Ratio of 1.27 is within the conventional range for the Banks - Diversified industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.

AIG vs. BAC: A comparison of their P/B Ratio against their respective Insurance - Diversified and Banks - Diversified industry benchmarks.

Valuation at a Glance

Symbol	AIG	BAC
Price-to-Earnings Ratio (P/E, TTM)	-25.70	13.49
Forward PEG Ratio (TTM)	-1.34	0.90
Price-to-Sales Ratio (P/S, TTM)	1.76	1.93
Price-to-Book Ratio (P/B, TTM)	1.19	1.27
Price-to-Free Cash Flow Ratio (P/FCF, TTM)	17.77	81.00
EV-to-EBITDA (TTM)	7.31	25.04
EV-to-Sales (TTM)	2.02	4.23