American International Group Inc (AIG)vsVertex Pharmaceuticals Inc (VRTX)
AIG
American International Group Inc
$75.47
+1.52%
FINANCIAL SERVICES · Cap: $40.11B
VRTX
Vertex Pharmaceuticals Inc
$454.97
+1.42%
HEALTHCARE · Cap: $113.95B
Smart Verdict
WallStSmart Research — data-driven comparison
American International Group Inc generates 122% more annual revenue ($26.61B vs $12.00B). VRTX leads profitability with a 32.9% profit margin vs 11.6%. AIG appears more attractively valued with a PEG of 0.86. VRTX earns a higher WallStSmart Score of 66/100 (B-).
AIG
Buy60
out of 100
Grade: C
VRTX
Strong Buy66
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-112.5%
Fair Value
$36.92
Current Price
$75.47
$38.55 premium
Margin of Safety
+36.5%
Fair Value
$716.04
Current Price
$454.97
$261.07 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Conservative balance sheet, low leverage
Growing faster than its price suggests
Attractively priced relative to earnings
Keeps 33 of every $100 in revenue as profit
Strong operational efficiency at 39.6%
Safe zone — low bankruptcy risk
Large-cap with strong market position
Every $100 of equity generates 23 in profit
Conservative balance sheet, low leverage
Areas to Watch
ROE of 7.4% — below average capital efficiency
Revenue declined 7.2%
Earnings declined 5.6%
Distress zone — elevated risk
Expensive relative to growth rate
Moderate valuation
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : AIG
The strongest argument for AIG centers on Price/Book, Debt/Equity, PEG Ratio. PEG of 0.86 suggests the stock is reasonably priced for its growth.
Bull Case : VRTX
The strongest argument for VRTX centers on Profit Margin, Operating Margin, Altman Z-Score. Profitability is solid with margins at 32.9% and operating margin at 39.6%.
Bear Case : AIG
The primary concerns for AIG are Return on Equity, Revenue Growth, EPS Growth.
Bear Case : VRTX
The primary concerns for VRTX are PEG Ratio, P/E Ratio, Piotroski F-Score.
Key Dynamics to Monitor
AIG profiles as a declining stock while VRTX is a mature play — different risk/reward profiles.
AIG carries more volatility with a beta of 0.58 — expect wider price swings.
VRTX is growing revenue faster at 9.5% — sustainability is the question.
AIG generates stronger free cash flow (636M), providing more financial flexibility.
Bottom Line
VRTX scores higher overall (66/100 vs 60/100), backed by strong 32.9% margins. Both earn "Strong Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
American International Group Inc
FINANCIAL SERVICES · INSURANCE - DIVERSIFIED · USA
American International Group, Inc., also known as AIG, is an American multinational finance and insurance corporation with operations in more than 80 countries and jurisdictions. The company operates through three core businesses: General Insurance, Life & Retirement, and a standalone technology-enabled subsidiary.
Vertex Pharmaceuticals Inc
HEALTHCARE · BIOTECHNOLOGY · USA
Vertex Pharmaceuticals, Inc. is an American biopharmaceutical company based in Boston, Massachusetts.
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