AIG vs. STT: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at AIG and STT, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
AIG’s market capitalization of 47.94 billion USD is substantially larger than STT’s 31.46 billion USD, indicating a significant difference in their market valuations.
STT carries a higher beta at 1.46, indicating it’s more sensitive to market moves, while AIG (beta: 0.66) exhibits greater stability.
| Symbol | AIG | STT |
|---|---|---|
| Company Name | American International Group, Inc. | State Street Corporation |
| Country | US | US |
| Sector | Financial Services | Financial Services |
| Industry | Insurance - Diversified | Asset Management |
| CEO | Peter Salvatore Zaffino | Ronald Philip O'Hanley |
| Price | 83.18 USD | 110.31 USD |
| Market Cap | 47.94 billion USD | 31.46 billion USD |
| Beta | 0.66 | 1.46 |
| Exchange | NYSE | NYSE |
| IPO Date | January 2, 1973 | March 17, 1980 |
| ADR | No | No |
Historical Performance
This chart compares the performance of AIG and STT 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.
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.
STT
11.18%
Asset Management Industry
- Max
- 34.25%
- Q3
- 18.22%
- Median
- 11.24%
- Q1
- 5.81%
- Min
- -5.72%
STT’s Return on Equity of 11.18% is on par with the norm for the Asset Management industry, indicating its profitability relative to shareholder equity is typical for the sector.
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.
STT
-16.42%
Asset Management Industry
- Max
- 42.18%
- Q3
- 20.06%
- Median
- 8.68%
- Q1
- 3.13%
- Min
- -16.42%
STT has a negative Return on Invested Capital of -16.42%. This indicates that its operations are failing to generate a profit on the total capital invested, signaling significant inefficiency or value destruction.
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.
STT
12.95%
Asset Management Industry
- Max
- 91.66%
- Q3
- 57.81%
- Median
- 29.48%
- Q1
- 15.70%
- Min
- -27.65%
Falling into the lower quartile for the Asset Management industry, STT’s Net Profit Margin of 12.95% indicates weaker profitability. This means the company retains a smaller portion of each dollar in sales as profit compared to its competitors.
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.
STT
16.34%
Asset Management Industry
- Max
- 99.76%
- Q3
- 78.28%
- Median
- 34.76%
- Q1
- 21.75%
- Min
- -48.25%
STT’s Operating Profit Margin of 16.34% is in the lower quartile for the Asset Management industry. This indicates weaker profitability from core operations, which may stem from inefficiencies or competitive pressures on pricing.
Profitability at a Glance
| Symbol | AIG | STT |
|---|---|---|
| Return on Equity (TTM) | -4.43% | 11.18% |
| Return on Assets (TTM) | -1.19% | 0.77% |
| Return on Invested Capital (TTM) | 10.39% | -16.42% |
| Net Profit Margin (TTM) | -7.05% | 12.95% |
| Operating Profit Margin (TTM) | 13.31% | 16.34% |
| Gross Profit Margin (TTM) | 100.00% | 58.70% |
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.
STT
0.14
Asset Management Industry
- Max
- 12.44
- Q3
- 5.76
- Median
- 3.04
- Q1
- 1.03
- Min
- 0.01
STT’s Current Ratio of 0.14 falls into the lower quartile for the Asset Management industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.
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.
STT
1.37
Asset Management Industry
- Max
- 2.62
- Q3
- 1.42
- Median
- 0.76
- Q1
- 0.34
- Min
- 0.01
STT’s Debt-to-Equity Ratio of 1.37 is typical for the Asset Management industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
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.
STT
0.40
Asset Management Industry
- Max
- 13.30
- Q3
- 6.30
- Median
- 2.71
- Q1
- 1.00
- Min
- -6.91
STT’s Interest Coverage Ratio of 0.40 is a critical concern. A value below 1.0 means operating earnings are insufficient to cover interest expenses, indicating severe financial strain and high default risk.
Financial Strength at a Glance
| Symbol | AIG | STT |
|---|---|---|
| Current Ratio (TTM) | -- | 0.14 |
| Quick Ratio (TTM) | -- | 0.14 |
| Debt-to-Equity Ratio (TTM) | 0.21 | 1.37 |
| Debt-to-Asset Ratio (TTM) | 0.05 | 0.10 |
| Net Debt-to-EBITDA Ratio (TTM) | 0.96 | 7.76 |
| Interest Coverage Ratio (TTM) | 8.29 | 0.40 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for AIG and STT. These metrics are based on the companies’ annual financial reports.
Revenue Growth
Earnings Per Share (EPS) Growth
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.
STT
2.76%
Asset Management Industry
- Max
- 26.09%
- Q3
- 11.60%
- Median
- 6.37%
- Q1
- 2.75%
- Min
- 0.00%
STT’s Dividend Yield of 2.76% is consistent with its peers in the Asset Management industry, providing a dividend return that is standard for its sector.
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.
STT
36.82%
Asset Management Industry
- Max
- 1,034.88%
- Q3
- 127.70%
- Median
- 75.15%
- Q1
- 34.21%
- Min
- 0.00%
STT’s Dividend Payout Ratio of 36.82% is within the typical range for the Asset Management industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
Dividend at a Glance
| Symbol | AIG | STT |
|---|---|---|
| Dividend Yield (TTM) | 1.98% | 2.76% |
| Dividend Payout Ratio (TTM) | -51.66% | 36.82% |
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.
STT
11.10
Asset Management Industry
- Max
- 38.72
- Q3
- 23.40
- Median
- 11.45
- Q1
- 8.80
- Min
- 1.54
STT’s P/E Ratio of 11.10 is within the middle range for the Asset Management industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
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.
STT
0.92
Asset Management Industry
- Max
- 6.38
- Q3
- 3.23
- Median
- 1.55
- Q1
- 0.89
- Min
- 0.02
STT’s Forward PEG Ratio of 0.92 is within the middle range of its peers in the Asset Management industry. This suggests a reasonable balance between the stock’s price and its expected growth, aligning with sector valuation norms.
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.
STT
1.42
Asset Management Industry
- Max
- 13.75
- Q3
- 7.92
- Median
- 4.87
- Q1
- 3.51
- Min
- 0.02
In the lower quartile for the Asset Management industry, STT’s P/S Ratio of 1.42 indicates its revenue is valued more conservatively than most of its peers. This could present a compelling opportunity if the market has overlooked its sales-generating capabilities.
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.
STT
1.19
Asset Management Industry
- Max
- 5.33
- Q3
- 2.75
- Median
- 1.06
- Q1
- 0.87
- Min
- 0.00
The P/B Ratio is often not a primary valuation metric for the Asset Management industry.
Valuation at a Glance
| Symbol | AIG | STT |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | -25.70 | 11.10 |
| Forward PEG Ratio (TTM) | -1.34 | 0.92 |
| Price-to-Sales Ratio (P/S, TTM) | 1.76 | 1.42 |
| Price-to-Book Ratio (P/B, TTM) | 1.19 | 1.19 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 17.77 | -7.20 |
| EV-to-EBITDA (TTM) | 7.31 | 15.37 |
| EV-to-Sales (TTM) | 2.02 | 2.87 |