CME vs. ICE, NDAQ, TW, TROW, LPLA, SMFG, MCO, BN, SAN, 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), Tradeweb Markets (TW), T. Rowe Price Group (TROW), LPL Financial (LPLA), Sumitomo Mitsui Financial Group (SMFG), Moody's (MCO), Brookfield (BN), Banco Santander (SAN), and Equinix (EQIX). 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 better stock? We will compare the two companies based on the strength of their community ranking, institutional ownership, risk, analyst recommendations, valuation, profitability, earnings, dividends and media sentiment.
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.
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 hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
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.
CME Group currently has a consensus target price of $217.80, indicating a potential upside of 4.54%. Intercontinental Exchange has a consensus target price of $147.92, indicating a potential upside of 10.62%. Given Intercontinental Exchange's stronger consensus rating and higher possible upside, analysts plainly believe Intercontinental Exchange is more favorable than CME Group.
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.
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.
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.
In the previous week, Intercontinental Exchange had 28 more articles in the media than CME Group. MarketBeat recorded 46 mentions for Intercontinental Exchange and 18 mentions for CME Group. CME Group's average media sentiment score of 0.86 beat Intercontinental Exchange's score of 0.52 indicating that CME Group is being referred to more favorably in the media.
Summary
Intercontinental Exchange beats CME Group on 14 of the 21 factors compared between the two stocks.
Get CME Group News Delivered to You Automatically
Sign up to receive the latest news and ratings for CME and its competitors with MarketBeat's FREE daily newsletter.
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.
Skip ChartThis 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.
Skip Chart
CME Group Competitors List
Related Companies and Tools