AIG vs. WFC: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at AIG and WFC, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
WFC’s market capitalization of 272.05 billion USD is significantly greater than AIG’s 47.94 billion USD, highlighting its more substantial market valuation.
WFC carries a higher beta at 1.16, indicating it’s more sensitive to market moves, while AIG (beta: 0.66) exhibits greater stability.
| Symbol | AIG | WFC |
|---|---|---|
| Company Name | American International Group, Inc. | Wells Fargo & Company |
| Country | US | US |
| Sector | Financial Services | Financial Services |
| Industry | Insurance - Diversified | Banks - Diversified |
| CEO | Peter Salvatore Zaffino | Charles W. Scharf |
| Price | 83.18 USD | 83.6 USD |
| Market Cap | 47.94 billion USD | 272.05 billion USD |
| Beta | 0.66 | 1.16 |
| Exchange | NYSE | NYSE |
| IPO Date | January 2, 1973 | June 1, 1972 |
| ADR | No | No |
Historical Performance
This chart compares the performance of AIG and WFC 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.
WFC
11.11%
Banks - Diversified Industry
- Max
- 20.93%
- Q3
- 14.73%
- Median
- 12.33%
- Q1
- 9.14%
- Min
- 5.86%
WFC’s Return on Equity of 11.11% is on par with the norm for the Banks - Diversified 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.
WFC
3.42%
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.
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.
WFC
16.19%
Banks - Diversified Industry
- Max
- 33.40%
- Q3
- 26.40%
- Median
- 19.24%
- Q1
- 14.99%
- Min
- 7.95%
WFC’s Net Profit Margin of 16.19% is aligned with the median group of its peers in the Banks - Diversified industry. This indicates its ability to convert revenue into profit is typical for the sector.
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.
WFC
18.70%
Banks - Diversified Industry
- Max
- 50.90%
- Q3
- 37.76%
- Median
- 28.44%
- Q1
- 15.73%
- Min
- 8.60%
WFC’s Operating Profit Margin of 18.70% is around the midpoint for the Banks - Diversified industry, indicating that its efficiency in managing core business operations is typical for the sector.
Profitability at a Glance
| Symbol | AIG | WFC |
|---|---|---|
| Return on Equity (TTM) | -4.43% | 11.11% |
| Return on Assets (TTM) | -1.19% | 1.03% |
| Return on Invested Capital (TTM) | 10.39% | 3.42% |
| Net Profit Margin (TTM) | -7.05% | 16.19% |
| Operating Profit Margin (TTM) | 13.31% | 18.70% |
| Gross Profit Margin (TTM) | 100.00% | 62.53% |
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.
WFC
0.27
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.
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.
WFC
1.73
Banks - Diversified Industry
- Max
- 4.98
- Q3
- 3.65
- Median
- 3.13
- Q1
- 1.73
- Min
- 0.09
WFC’s Debt-to-Equity Ratio of 1.73 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.
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.
WFC
0.55
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.
Financial Strength at a Glance
| Symbol | AIG | WFC |
|---|---|---|
| Current Ratio (TTM) | -- | 0.27 |
| Quick Ratio (TTM) | -- | 0.27 |
| Debt-to-Equity Ratio (TTM) | 0.21 | 1.73 |
| Debt-to-Asset Ratio (TTM) | 0.05 | 0.16 |
| Net Debt-to-EBITDA Ratio (TTM) | 0.96 | 4.43 |
| Interest Coverage Ratio (TTM) | 8.29 | 0.55 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for AIG and WFC. 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.
WFC
1.91%
Banks - Diversified Industry
- Max
- 7.73%
- Q3
- 4.16%
- Median
- 3.24%
- Q1
- 2.27%
- Min
- 0.00%
WFC’s Dividend Yield of 1.91% 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.
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.
WFC
31.63%
Banks - Diversified Industry
- Max
- 84.94%
- Q3
- 39.11%
- Median
- 26.91%
- Q1
- 0.00%
- Min
- 0.00%
WFC’s Dividend Payout Ratio of 31.63% is within the typical range for the Banks - Diversified industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
Dividend at a Glance
| Symbol | AIG | WFC |
|---|---|---|
| Dividend Yield (TTM) | 1.98% | 1.91% |
| Dividend Payout Ratio (TTM) | -51.66% | 31.63% |
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.
WFC
13.71
Banks - Diversified Industry
- Max
- 14.13
- Q3
- 13.37
- Median
- 11.90
- Q1
- 9.29
- Min
- 7.43
A P/E Ratio of 13.71 places WFC 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.
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.
WFC
0.72
Banks - Diversified Industry
- Max
- 1.98
- Q3
- 1.41
- Median
- 1.15
- Q1
- 0.77
- Min
- 0.45
In the lower quartile for the Banks - Diversified industry, WFC’s Forward PEG Ratio of 0.72 is a positive indicator. It suggests that the stock may be attractively valued relative to its expected earnings growth.
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.
WFC
2.20
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.
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.
WFC
1.51
Banks - Diversified Industry
- Max
- 1.89
- Q3
- 1.47
- Median
- 1.23
- Q1
- 1.10
- Min
- 0.65
WFC’s P/B Ratio of 1.51 is in the upper tier for the Banks - Diversified industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.
Valuation at a Glance
| Symbol | AIG | WFC |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | -25.70 | 13.71 |
| Forward PEG Ratio (TTM) | -1.34 | 0.72 |
| Price-to-Sales Ratio (P/S, TTM) | 1.76 | 2.20 |
| Price-to-Book Ratio (P/B, TTM) | 1.19 | 1.51 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 17.77 | 65.98 |
| EV-to-EBITDA (TTM) | 7.31 | 13.29 |
| EV-to-Sales (TTM) | 2.02 | 3.30 |