Arch Capital Group Ltd. (ACGL) vs American International Group, Inc. (AIG)

Arch Capital Group Ltd. and American International Group, Inc. are both Insurance Diversified companies. American International Group, Inc. is the larger, with a market value of $42.3B against $37.7B — 1.1× the size. Arch Capital Group Ltd. trades at the lower P/E: 8.8× against 13.1×. American International Group, Inc. grew revenue faster over the last twelve months: 1.19% against −3.91%. Arch Capital Group Ltd. has the higher net margin (23.1% vs 11.9%) and the higher return on invested capital (11.8% vs 0.00%). Only American International Group, Inc. pays a dividend (2.35%). Across the 21 metrics below, Arch Capital Group Ltd. leads on 14 and American International Group, Inc. on 7.

Valuation

Metric ACGL AIG Insurance Diversified median
P/E 8.83 13.07 11.57
P/S 1.97 1.52 1.52
P/B 1.67 1.09 1.64
Price to free cash flow 6.58 8.13 6.58
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 11.33% 7.65% 7.65%
Free cash flow yield 15.20% 12.30% 15.20%

Profitability

Metric ACGL AIG Insurance Diversified median
Gross margin 37.64% 0.00% 53.26%
Operating margin 26.60% 0.00% 19.02%
Net margin 23.10% 11.87% 15.94%
Free cash flow margin 29.98% 18.75% 6.29%
Return on equity 19.25% 8.22% 12.08%
Return on assets 5.31% 2.02% 5.31%
Return on invested capital 11.80% 0.00% 9.01%

Growth

Metric ACGL AIG Insurance Diversified median
Revenue growth (TTM) (3.91%) 1.19% 1.89%
EPS growth (last fiscal year) 3.66% 350.23% 28.70%
Revenue growth, 5-year CAGR 18.56% (9.35%) 8.63%
Net income growth, 5-year CAGR 26.16% 0.00% 10.84%

Health

Metric ACGL AIG Insurance Diversified median
Debt to equity 0.20 0.00 0.17
Current ratio 0.47 0.51 0.47
Net debt to EBITDA 0.38 1.24 0.17

Dividend

Metric ACGL AIG Insurance Diversified median
Dividend yield 0.00% 2.35% 1.96%
Payout ratio 0.00 0.31 0.15

Size

Metric ACGL AIG Insurance Diversified median
Market cap 37.73b 42.32b 12.81b

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