American International Group, Inc. (AIG) vs Berkshire Hathaway Inc. (BRK.A)

American International Group, Inc. and Berkshire Hathaway Inc. are both Insurance Diversified companies. Berkshire Hathaway Inc. is the larger, with a market value of $973.2B against $39.1B — 24.9× the size. American International Group, Inc. trades at the lower P/E: 13.5× against 19,015×. Berkshire Hathaway Inc. grew revenue faster over the last twelve months: 3.93% against −4.19%. Berkshire Hathaway Inc. has the higher net margin (22.3% vs 11.1%) and the higher return on invested capital (9.01% vs 4.45%). Across the 22 metrics below, American International Group, Inc. leads on 11 and Berkshire Hathaway Inc. on 11.

Valuation

Metric AIG BRK.A Insurance Diversified median
P/E 13.46 19,014.66 11.30
P/S 1.47 4,251.29 1.47
P/B 0.97 2,180.04 1.45
Price to free cash flow 10.20 67,537.29 5.78
EV/EBITDA 6.51 8,676.23 6.62
EV/Sales 1.82 4,251.52 1.82
Earnings yield 7.43% 0.01% 7.87%
Free cash flow yield 9.80% 0.00% 17.30%

Profitability

Metric AIG BRK.A Insurance Diversified median
Gross margin 28.38% 79.27% 53.26%
Operating margin 14.83% 45.36% 18.04%
Net margin 11.13% 22.30% 15.94%
Free cash flow margin 14.45% 6.29% 20.02%
Return on equity 7.22% 12.08% 12.08%
Return on assets 1.80% 7.07% 5.06%
Return on invested capital 4.45% 9.01% 9.01%

Growth

Metric AIG BRK.A Insurance Diversified median
Revenue growth (TTM) (4.19%) 3.93% (1.11%)
EPS growth (last fiscal year) 350.23% (24.93%) —
Revenue growth, 5-year CAGR (9.35%) 8.63% 8.63%
Net income growth, 5-year CAGR 0.00% 9.51% 10.84%

Health

Metric AIG BRK.A Insurance Diversified median
Debt to equity 0.26 0.17 0.22
Current ratio 0.51 0.32 0.48
Net debt to EBITDA 1.24 0.50 0.17

Dividend

Metric AIG BRK.A Insurance Diversified median
Dividend yield 2.08% — 2.08%
Payout ratio 0.20 0.00 0.02

Size

Metric AIG BRK.A Insurance Diversified median
Market cap 39.12b 973.16b 13.12b

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