Financial Comparison: American International Group (NYSE:AIG) versus GAINSCO (OTCMKTS:GANS)

GAINSCO (OTCMKTS:GANS) and American International Group (NYSE:AIG) are both finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, institutional ownership, dividends, earnings, profitability and risk.

Valuation and Earnings

This table compares GAINSCO and American International Group”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GAINSCO	N/A	N/A	N/A	N/A	N/A
American International Group	$27.27 billion	1.83	-$1.40 billion	($2.08)	-40.35

GAINSCO has higher earnings, but lower revenue than American International Group.

Institutional & Insider Ownership

90.6% of American International Group shares are held by institutional investors. 73.5% of GAINSCO shares are held by company insiders. Comparatively, 0.6% of American International Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent recommendations for GAINSCO and American International Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GAINSCO	0	0	0	0	0.00
American International Group	0	7	9	1	2.65

American International Group has a consensus price target of $84.31, suggesting a potential upside of 0.47%. Given American International Group’s stronger consensus rating and higher probable upside, analysts clearly believe American International Group is more favorable than GAINSCO.

Profitability

This table compares GAINSCO and American International Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
GAINSCO	N/A	N/A	N/A
American International Group	-4.25%	8.01%	1.39%

Summary

American International Group beats GAINSCO on 8 of the 10 factors compared between the two stocks.

About GAINSCO

GAINSCO, Inc. operates as a property and casualty insurance holding company. The company offers non-standard personal auto products, including coverage for third party liability, bodily injury, and physical damage, as well as collision and coverage for theft, physical damage, and other perils for an insured's vehicle. It is also involved in automotive sales and service, auto racing, and investment activities. The company offers its automobile insurance products under the GAINSCO Auto Insurance brand through independent partner agents and Website comparison shopping places. GAINSCO, Inc. was founded in 1978 and is based in Dallas, Texas.

About American International Group

American International Group, Inc. offers insurance products for commercial, institutional, and individual customers in North America and internationally. It operates through three segments: General Insurance, Life and Retirement, and Other Operations. The General Insurance segment provides commercial and industrial property insurance, including business interruption and package insurance that cover exposure to made and natural disasters; general liability, environmental, commercial automobile liability, workers’ compensation, excess casualty, and crisis management insurance products; and professional liability insurance. This segment offers marine, energy-related property insurance, aviation, political risk, trade credit, trade finance, and portfolio solutions, as well as operates reinsurance business; voluntary and sponsor-paid personal accident, and supplemental health products; and personal auto and personal property insurance. Its Life and Retirement segment offers individual retirement products, including variable, fixed index, and fixed annuities, as well as retail mutual funds; group retirement products comprising record-keeping, plan administrative and compliance services, financial planning, and advisory solutions; life insurance, including term and universal life insurance; and institutional markets products, which includes wrap products, structured settlement, pension risk transfer annuities, corporate and bank-owned life insurance, high net worth, and guaranteed investment contract products. It distributes its products through a network of brokers, agents, advisors, banks, and other distributors. The company was founded in 1919 and is headquartered in New York, New York.