WallStSmart

American International Group Inc (AIG)vsFirst Merchants Corporation (FRME)

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Smart Verdict

WallStSmart Research — data-driven comparison

American International Group Inc generates 3855% more annual revenue ($26.74B vs $676.12M). FRME leads profitability with a 29.2% profit margin vs 11.1%. AIG appears more attractively valued with a PEG of 0.68. FRME earns a higher WallStSmart Score of 78/100 (B+).

AIG

Buy

61

out of 100

Grade: C+

Growth: 2.7Profit: 5.5Value: 7.0Quality: 5.5
Piotroski: 4/9Altman Z: 0.67

FRME

Strong Buy

78

out of 100

Grade: B+

Growth: 7.3Profit: 7.0Value: 6.3Quality: 5.0
Piotroski: 6/9Altman Z: -0.11

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AIG5 strengths · Avg: 8.6/10
Price/BookValuation
1.1x10/10

Reasonable price relative to book value

Debt/EquityHealth
0.229/10

Conservative balance sheet, low leverage

PEG RatioValuation
0.688/10

Growing faster than its price suggests

P/E RatioValuation
14.6x8/10

Attractively priced relative to earnings

Free Cash FlowQuality
$1.72B8/10

Generating 1.7B in free cash flow

FRME5 strengths · Avg: 9.0/10
Price/BookValuation
1.0x10/10

Reasonable price relative to book value

Operating MarginProfitability
45.0%10/10

Strong operational efficiency at 45.0%

Profit MarginProfitability
29.2%9/10

Keeps 29 of every $100 in revenue as profit

P/E RatioValuation
12.7x8/10

Attractively priced relative to earnings

Revenue GrowthGrowth
21.0%8/10

Revenue surging 21.0% year-over-year

Areas to Watch

AIG4 concerns · Avg: 2.8/10
Revenue GrowthGrowth
0.5%4/10

0.5% revenue growth

Return on EquityProfitability
7.3%3/10

ROE of 7.3% — below average capital efficiency

EPS GrowthGrowth
-10.1%2/10

Earnings declined 10.1%

Altman Z-ScoreHealth
0.672/10

Distress zone — elevated risk

FRME2 concerns · Avg: 2.5/10
Return on EquityProfitability
7.4%3/10

ROE of 7.4% — below average capital efficiency

Altman Z-ScoreHealth
-0.112/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : AIG

The strongest argument for AIG centers on Price/Book, Debt/Equity, PEG Ratio. PEG of 0.68 suggests the stock is reasonably priced for its growth.

Bull Case : FRME

The strongest argument for FRME centers on Price/Book, Operating Margin, Profit Margin. Profitability is solid with margins at 29.2% and operating margin at 45.0%. Revenue growth of 21.0% demonstrates continued momentum.

Bear Case : AIG

The primary concerns for AIG are Revenue Growth, Return on Equity, EPS Growth.

Bear Case : FRME

The primary concerns for FRME are Return on Equity, Altman Z-Score.

Key Dynamics to Monitor

AIG profiles as a value stock while FRME is a growth play — different risk/reward profiles.

FRME carries more volatility with a beta of 0.88 — expect wider price swings.

FRME is growing revenue faster at 21.0% — sustainability is the question.

AIG generates stronger free cash flow (1.7B), providing more financial flexibility.

Bottom Line

FRME scores higher overall (78/100 vs 61/100), backed by strong 29.2% margins and 21.0% revenue growth. 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.

First Merchants Corporation

FINANCIAL SERVICES · BANKS - REGIONAL · USA

First Merchants Corporation is the financial holding company for First Merchants Bank providing community banking services. The company is headquartered in Muncie, Indiana.

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