CME vs. ICE, NDAQ, TROW, TW, SAN, SMFG, AMT, KKR, BX, and EQIX
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), Banco Santander (SAN), Sumitomo Mitsui Financial Group (SMFG), American Tower (AMT), KKR & Co. Inc. (KKR), Blackstone (BX), and Equinix (EQIX). 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 investment? We will compare the two companies based on the strength of their valuation, community ranking, risk, dividends, earnings, media sentiment, analyst recommendations, institutional ownership and profitability.
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.
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.
Intercontinental Exchange pays an annual dividend of $1.80 per share and has a dividend yield of 1.4%. 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 increased its dividend for 8 consecutive years and CME Group has increased 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 received 165 more outperform votes than CME Group when rated by MarketBeat users. Likewise, 72.74% of users gave Intercontinental Exchange an outperform vote while only 59.84% of users gave CME Group an outperform vote.
89.3% of Intercontinental Exchange shares are owned by institutional investors. Comparatively, 87.8% of CME Group shares are owned by institutional investors. 1.1% of Intercontinental Exchange shares are owned by company insiders. Comparatively, 0.3% of CME Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
In the previous week, Intercontinental Exchange had 30 more articles in the media than CME Group. MarketBeat recorded 49 mentions for Intercontinental Exchange and 19 mentions for CME Group. Intercontinental Exchange's average media sentiment score of 0.73 beat CME Group's score of 0.60 indicating that CME Group is being referred to more favorably in the news media.
Intercontinental Exchange presently has a consensus target price of $147.92, indicating a potential upside of 13.35%. CME Group has a consensus target price of $217.80, indicating a potential upside of 4.89%. Given CME Group's stronger consensus rating and higher probable upside, equities analysts plainly believe Intercontinental Exchange is more favorable than CME Group.
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.
Summary
Intercontinental Exchange beats CME Group on 14 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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