Summary: OVERPRICED
Score: 8/20
MOS: 46%
Share Price: $31
Sticker Price: $59
Is AIG a good buy?
AIG is a global life insurance, travel insurance, accident insurance, and investment firm. They were founded in 1919 and operate in more than 80 countries.
AIG has been bleeding cash recently due to COVID-19. Life insurance, workers compensation, business insurance, and even sports related facilities are filing claims and AIG is paying out, big time. Their quarterly profits have dropped by a massive 56%. That’s a big hit.
Now let’s take a look at HUM and AIG when compared side by side.
HUM and AIG both operate within the insurance industry. HUM is health insurance and AIG is life insurance and investments.
On the surface, someone may think AIG ($31) is cheaper than HUM ($394). This isn’t true because “cheap” is relative to the MOS (margin of safety). HUM has a MOS of 53% and AIG has a MOS of 46%. A stock is classified as ON SALE if the MOS is greater than 50%. In this case, HUM is the cheaper stock.
When we go a step further to look at the financials, HUM has a score of 16/20 whereas AIG has a score of 8/20. In other words, HUM is financially stronger than AIG, making it the wiser investment.
Don’t focus on share price. Focus on sticker price, MOS, and the points.
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The Summary, Score, and MOS of this stock may have changed since the posting of this review. Please login to Tykr to see up-to-date information.