CME vs. ICE, NDAQ, TW, TROW, LPLA, EQIX, SMFG, MCO, BN, and SAN
Should you be buying CME Group stock or one of its competitors? The main competitors of CME Group include Intercontinental Exchange (ICE), Nasdaq (NDAQ), Tradeweb Markets (TW), T. Rowe Price Group (TROW), LPL Financial (LPLA), Equinix (EQIX), Sumitomo Mitsui Financial Group (SMFG), Moody's (MCO), Brookfield (BN), and Banco Santander (SAN). These companies are all part of the "finance" sector.
Intercontinental Exchange (NYSE:ICE) and CME Group (NASDAQ:CME) are both large-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their community ranking, earnings, valuation, media sentiment, analyst recommendations, risk, dividends, institutional ownership and profitability.
89.3% of Intercontinental Exchange shares are held by institutional investors. Comparatively, 87.8% of CME Group shares are held by institutional investors. 1.1% of Intercontinental Exchange shares are held by company insiders. Comparatively, 0.3% of CME Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Intercontinental Exchange received 165 more outperform votes than CME Group when rated by MarketBeat users. Likewise, 72.67% of users gave Intercontinental Exchange an outperform vote while only 59.84% of users gave CME Group an outperform vote.
CME Group has lower revenue, but higher earnings than Intercontinental Exchange. CME Group is trading at a lower price-to-earnings ratio than Intercontinental Exchange, indicating that it is currently the more affordable of the two stocks.
Intercontinental Exchange has a beta of 1.02, meaning that its stock price is 2% more volatile than the S&P 500. Comparatively, CME Group has a beta of 0.48, meaning that its stock price is 52% less volatile than the S&P 500.
CME Group has a net margin of 56.84% compared to CME Group's net margin of 24.24%. CME Group's return on equity of 12.76% beat Intercontinental Exchange's return on equity.
In the previous week, CME Group had 17 more articles in the media than Intercontinental Exchange. MarketBeat recorded 35 mentions for CME Group and 18 mentions for Intercontinental Exchange. Intercontinental Exchange's average media sentiment score of 0.97 beat CME Group's score of 0.82 indicating that CME Group is being referred to more favorably in the news media.
Intercontinental Exchange pays an annual dividend of $1.80 per share and has a dividend yield of 1.3%. CME Group pays an annual dividend of $4.60 per share and has a dividend yield of 2.2%. Intercontinental Exchange pays out 41.3% of its earnings in the form of a dividend. CME Group pays out 52.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Intercontinental Exchange has raised its dividend for 8 consecutive years and CME Group has raised its dividend for 14 consecutive years. CME Group is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Intercontinental Exchange presently has a consensus target price of $147.92, suggesting a potential upside of 6.88%. CME Group has a consensus target price of $217.80, suggesting a potential upside of 2.19%. Given CME Group's stronger consensus rating and higher probable upside, research analysts clearly believe Intercontinental Exchange is more favorable than CME Group.
Summary
Intercontinental Exchange beats CME Group on 13 of the 22 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding CME and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NASDAQ and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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