CME vs. ICE, MCO, IBKR, MSCI, NDAQ, MKTX, AROW, TW, TROW, and LPLA
Should you be buying CME Group stock or one of its competitors? The main competitors of CME Group include Intercontinental Exchange (ICE), Moody's (MCO), Interactive Brokers Group (IBKR), MSCI (MSCI), Nasdaq (NDAQ), MarketAxess (MKTX), Arrow Financial (AROW), Tradeweb Markets (TW), T. Rowe Price Group (TROW), and LPL Financial (LPLA).
CME Group (NASDAQ:CME) and Intercontinental Exchange (NYSE:ICE) are both large-cap finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, profitability, dividends, valuation, institutional ownership, media sentiment, community ranking and earnings.
Intercontinental Exchange received 166 more outperform votes than CME Group when rated by MarketBeat users. Likewise, 72.70% of users gave Intercontinental Exchange an outperform vote while only 59.84% of users gave CME Group an outperform vote.
CME Group has a beta of 0.48, suggesting that its share price is 52% less volatile than the S&P 500. Comparatively, Intercontinental Exchange has a beta of 1.02, suggesting that its share price is 2% more volatile than the S&P 500.
CME Group currently has a consensus target price of $217.80, indicating a potential upside of 4.00%. Intercontinental Exchange has a consensus target price of $148.29, indicating a potential upside of 10.29%. Given Intercontinental Exchange's stronger consensus rating and higher probable upside, analysts clearly believe Intercontinental Exchange is more favorable than CME Group.
87.8% of CME Group shares are owned by institutional investors. Comparatively, 89.3% of Intercontinental Exchange shares are owned by institutional investors. 0.3% of CME Group shares are owned by insiders. Comparatively, 1.1% of Intercontinental Exchange shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
CME Group pays an annual dividend of $4.60 per share and has a dividend yield of 2.2%. Intercontinental Exchange pays an annual dividend of $1.80 per share and has a dividend yield of 1.3%. CME Group pays out 52.3% of its earnings in the form of a dividend. Intercontinental Exchange pays out 41.3% 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.
In the previous week, Intercontinental Exchange had 12 more articles in the media than CME Group. MarketBeat recorded 27 mentions for Intercontinental Exchange and 15 mentions for CME Group. CME Group's average media sentiment score of 0.99 beat Intercontinental Exchange's score of 0.33 indicating that CME Group is being referred to more favorably in the media.
CME Group has higher earnings, but lower revenue 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.
CME Group has a net margin of 56.84% compared to Intercontinental Exchange's net margin of 24.24%. Intercontinental Exchange's return on equity of 12.76% beat CME Group's return on equity.
Summary
Intercontinental Exchange beats CME Group on 14 of the 21 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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