CME vs. ICE, NDAQ, TROW, TW, LPLA, SAN, SMFG, EQIX, KKR, and MCO
Should you be buying CME Group stock or one of its competitors? The main competitors of CME Group include Intercontinental Exchange (ICE), Nasdaq (NDAQ), T. Rowe Price Group (TROW), Tradeweb Markets (TW), LPL Financial (LPLA), Banco Santander (SAN), Sumitomo Mitsui Financial Group (SMFG), Equinix (EQIX), KKR & Co. Inc. (KKR), and Moody's (MCO). These companies are all part of the "finance" sector.
CME Group (NASDAQ:CME) and Intercontinental Exchange (NYSE:ICE) are both large-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, media sentiment, valuation, community ranking, institutional ownership, dividends, analyst recommendations, risk and earnings.
CME Group presently has a consensus target price of $217.80, indicating a potential upside of 3.25%. Intercontinental Exchange has a consensus target price of $148.08, indicating a potential upside of 12.44%. Given Intercontinental Exchange's stronger consensus rating and higher probable upside, analysts clearly believe Intercontinental Exchange is more favorable than CME Group.
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.
87.8% of CME Group shares are held by institutional investors. Comparatively, 89.3% of Intercontinental Exchange shares are held by institutional investors. 0.3% of CME Group shares are held by insiders. Comparatively, 1.1% of Intercontinental Exchange shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
In the previous week, CME Group had 13 more articles in the media than Intercontinental Exchange. MarketBeat recorded 29 mentions for CME Group and 16 mentions for Intercontinental Exchange. CME Group's average media sentiment score of 0.87 beat Intercontinental Exchange's score of 0.46 indicating that CME Group is being referred to more favorably in the media.
CME Group has a beta of 0.49, suggesting that its stock price is 51% less volatile than the S&P 500. Comparatively, Intercontinental Exchange has a beta of 1.02, suggesting that its stock price is 2% more volatile than the S&P 500.
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 1.4%. CME Group pays out 52.3% of its earnings in the form of a dividend. Intercontinental Exchange pays out 42.9% 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.
CME Group has a net margin of 56.84% compared to Intercontinental Exchange's net margin of 23.91%. Intercontinental Exchange's return on equity of 12.91% beat CME Group's return on equity.
Intercontinental Exchange received 161 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.
Summary
Intercontinental Exchange beats CME Group on 13 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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