AIG vs. WTW: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at AIG and WTW, 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 WTW’s 30.40 billion USD, indicating a significant difference in their market valuations.
With betas of 0.66 for AIG and 0.71 for WTW, both stocks show similar sensitivity to overall market movements.
| Symbol | AIG | WTW |
|---|---|---|
| Company Name | American International Group, Inc. | Willis Towers Watson Public Limited Company |
| Country | US | GB |
| Sector | Financial Services | Financial Services |
| Industry | Insurance - Diversified | Insurance - Brokers |
| CEO | Peter Salvatore Zaffino | Carl A. Hess CERA, |
| Price | 83.18 USD | 306.64 USD |
| Market Cap | 47.94 billion USD | 30.40 billion USD |
| Beta | 0.66 | 0.71 |
| Exchange | NYSE | NASDAQ |
| IPO Date | January 2, 1973 | June 12, 2001 |
| ADR | No | No |
Historical Performance
This chart compares the performance of AIG and WTW 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.
WTW
-0.64%
Insurance - Brokers Industry
- Max
- 40.40%
- Q3
- 30.52%
- Median
- 22.48%
- Q1
- 4.38%
- Min
- -5.38%
WTW has a negative Return on Equity of -0.64%. 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.
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.
WTW
-1.51%
Insurance - Brokers Industry
- Max
- 11.62%
- Q3
- 11.18%
- Median
- 8.38%
- Q1
- 2.57%
- Min
- -1.51%
WTW has a negative Return on Invested Capital of -1.51%. 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.
WTW
-0.54%
Insurance - Brokers Industry
- Max
- 21.33%
- Q3
- 15.86%
- Median
- 10.63%
- Q1
- 1.06%
- Min
- -2.28%
WTW has a negative Net Profit Margin of -0.54%, indicating the company is operating at a net loss as its expenses exceeded its revenues.
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.
WTW
8.87%
Insurance - Brokers Industry
- Max
- 28.73%
- Q3
- 23.24%
- Median
- 21.46%
- Q1
- 10.89%
- Min
- 5.35%
WTW’s Operating Profit Margin of 8.87% is in the lower quartile for the Insurance - Brokers industry. This indicates weaker profitability from core operations, which may stem from inefficiencies or competitive pressures on pricing.
Profitability at a Glance
| Symbol | AIG | WTW |
|---|---|---|
| Return on Equity (TTM) | -4.43% | -0.64% |
| Return on Assets (TTM) | -1.19% | -0.19% |
| Return on Invested Capital (TTM) | 10.39% | -1.51% |
| Net Profit Margin (TTM) | -7.05% | -0.54% |
| Operating Profit Margin (TTM) | 13.31% | 8.87% |
| Gross Profit Margin (TTM) | 100.00% | 52.69% |
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.
WTW
1.16
Insurance - Brokers Industry
- Max
- 1.90
- Q3
- 1.76
- Median
- 1.29
- Q1
- 1.14
- Min
- 1.05
WTW’s Current Ratio of 1.16 aligns with the median group of the Insurance - Brokers industry, indicating that its short-term liquidity is in line with its sector peers.
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.
WTW
0.73
Insurance - Brokers Industry
- Max
- 4.59
- Q3
- 2.12
- Median
- 0.59
- Q1
- 0.07
- Min
- 0.01
WTW’s Debt-to-Equity Ratio of 0.73 is typical for the Insurance - Brokers 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.
WTW
3.30
Insurance - Brokers Industry
- Max
- 29.40
- Q3
- 16.65
- Median
- 7.25
- Q1
- 4.20
- Min
- 1.60
In the lower quartile for the Insurance - Brokers industry, WTW’s Interest Coverage Ratio of 3.30 indicates a tighter cushion for servicing debt, suggesting less financial flexibility than many of its competitors.
Financial Strength at a Glance
| Symbol | AIG | WTW |
|---|---|---|
| Current Ratio (TTM) | -- | 1.16 |
| Quick Ratio (TTM) | -- | 1.16 |
| Debt-to-Equity Ratio (TTM) | 0.21 | 0.73 |
| Debt-to-Asset Ratio (TTM) | 0.05 | 0.21 |
| Net Debt-to-EBITDA Ratio (TTM) | 0.96 | 1.36 |
| Interest Coverage Ratio (TTM) | 8.29 | 3.30 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for AIG and WTW. 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.
WTW
1.17%
Insurance - Brokers Industry
- Max
- 2.63%
- Q3
- 1.34%
- Median
- 0.79%
- Q1
- 0.00%
- Min
- 0.00%
WTW’s Dividend Yield of 1.17% is consistent with its peers in the Insurance - Brokers 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.
WTW
-671.70%
Insurance - Brokers Industry
- Max
- 45.22%
- Q3
- 39.19%
- Median
- 29.49%
- Q1
- 3.85%
- Min
- 0.00%
WTW has a negative Dividend Payout Ratio of -671.70%. This typically means the company paid a dividend despite reporting a net loss, a situation that may signal financial instability.
Dividend at a Glance
| Symbol | AIG | WTW |
|---|---|---|
| Dividend Yield (TTM) | 1.98% | 1.17% |
| Dividend Payout Ratio (TTM) | -51.66% | -671.70% |
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.
WTW
-578.57
Insurance - Brokers Industry
- Max
- 45.50
- Q3
- 35.20
- Median
- 30.00
- Q1
- 28.34
- Min
- 26.42
WTW has a negative P/E Ratio of -578.57. This occurs when a company has negative earnings (a net loss), making the ratio unsuitable for valuation analysis.
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.
WTW
-41.18
Insurance - Brokers Industry
- Max
- 3.32
- Q3
- 3.00
- Median
- 2.77
- Q1
- 2.41
- Min
- 2.09
WTW has a negative Forward PEG Ratio of -41.18. This typically results from negative earnings or forecasts of declining future earnings, making the ratio not meaningful for valuation.
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.
WTW
3.10
Insurance - Brokers Industry
- Max
- 7.38
- Q3
- 5.34
- Median
- 4.27
- Q1
- 2.32
- Min
- 0.27
WTW’s P/S Ratio of 3.10 aligns with the market consensus for the Insurance - Brokers industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
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.
WTW
3.77
Insurance - Brokers Industry
- Max
- 10.90
- Q3
- 8.10
- Median
- 6.93
- Q1
- 4.15
- Min
- 1.12
WTW’s P/B Ratio of 3.77 is in the lower quartile for the Insurance - Brokers 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.
Valuation at a Glance
| Symbol | AIG | WTW |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | -25.70 | -578.57 |
| Forward PEG Ratio (TTM) | -1.34 | -41.18 |
| Price-to-Sales Ratio (P/S, TTM) | 1.76 | 3.10 |
| Price-to-Book Ratio (P/B, TTM) | 1.19 | 3.77 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 17.77 | 20.80 |
| EV-to-EBITDA (TTM) | 7.31 | 10.72 |
| EV-to-Sales (TTM) | 2.02 | 3.55 |