In today's first round match-up of The Motley Fool Better-Buy Tournament, AIG squares off against Broadcom in a battle to determine which stock is the better buy now. The 64-company tournament pits two Motley Fool analysts against each as they make the case for their stocks with the winner determined by you, the readers.
Motley Fool insurance analyst David Hanson believes AIG (NYSE:AIG) should move on to the next round because of the insurance giant's renewed focus on its core business. CEO Robert Benmosche has been instrumental in the company's turnaround but is nearing retirement. Despite this, AIG has a deep bench of executives that can carry AIG's legacy. Ultimately, David believes AIG's valuation today is depressed because of low investor expectations – expectations he believes the insurer can top.
Motley Fool tech and telecom analyst Andrew Tonner makes the case for Broadcom (UNKNOWN:BRCM.DL) to advance to the next round because of its intriguing mix of hugely profitable core businesses and exciting growth potential. Broadcom's business is divided into three segments. It's networking and home communications businesses are both cash cows that give it a firm financial foundation. But it's Broadcom's integrated chip business that really excites investors. Its chips help power many of the world's most high profile mobile devices, like Apple's iPhone. However, Broadcom hopes to expand its reach in mobile even more, which could mean big bucks for its investors.
Watch these analysts square off in the video below and then vote for a winner. Then check out the other companies in the Motley Fool Better-Buy Bracket.
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Cast your vote in the poll below the video!
Andrew Tonner owns shares of American International Group. David Hanson owns shares of American International Group. The Motley Fool recommends American International Group. The Motley Fool owns shares of American International Group and has the following options: long January 2016 $30 calls on American International Group. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.