CBOE vs. CME: Why the Former Keeps Upbreak 52-week High?
$CBOE Holdings Inc(CBOE)$ hit a maximum of $176.18 again on Tuesday trading, hitting a 52-week high, with a year-to-date increase of 37.79%. While the stock price trend of $CME Group Inc(CME)$ was not that aggressive as CBOE and has fell from its high point in mid-October.
Data from Seeking Alpha
The latest news shows:
CBOE invests in Japan's Osaka Digital Exchange. Security tokens to launch this year
Cboe tops Q3 profit estimates on strong trading volumes
CME Group also experienced a record-setting third quarter for Bitcoin and Ethereum futures and options contracts trading in recent quarters.
Compare the YTD in 2023: $CBOE Holdings Inc(CBOE)$ ‘s YTD 2023 surpasses $CME Group Inc(CME)$ since early November.
And Judging from the past 3 years: $CBOE Holdings Inc(CBOE)$ price rise almost tripled than $CME Group Inc(CME)$ 's price rise.
Data from Seeking Alpha
Why the $CBOE Holdings Inc(CBOE)$ share price rising so strongly?
Do you think $CBOE Holdings Inc(CBOE)$ will continue to see high stock price growth in the future?
Will $CME Group Inc(CME)$ catch up?
With these questions, I invite you to take a look at the fundamentals comparison of these two financial trading platform service companies:
Founded in 1898, it provides global benchmark products based on interest rates, equity indices, foreign exchange (FX), agriculture, energy and metal commodities
Number of employees in the group: 3,460
Outstanding share capital: 359 million shares (as of November 8, 2023)
The company’s latest dividend amount is: $2.634 billion
The total historical dividend amount reaches: $17.999 billion
Q2 dividend per share: $1.1 on 2023-09-07
Founded in 1973, CBOE was the first U.S. options exchange to offer standardized listed options in an organized market.
Number of employees: 1543,
Its outstanding share capital: 105 million shares (as of November 8, 2023), which is about 1/3 of $CME Group Inc (CME)$.
Latest dividend amount: $209 million
Total historical dividend amount: $1.249 billion
Dividend amount per share: $0.55 on 2023-11-29.
With the help of the Seaking alpha comparison tool, we can see the comparison of the following fundamental indicators more comprehensively:
1.The market capitalization and enterprise value of $CBOE Holdings Inc(CBOE)$ are less than 1/4 of $CME Group Inc(CME)$ .
Data from Seeking Alpha
2. From the ratings perspective, $CBOE Holdings Inc(CBOE)$ ’s Momentum and EPS Revisions are better than $CME Group Inc(CME)$’s.
Data from Seeking Alpha
3.From the perspective of P/E, the $CME Group Inc(CME)$ has higher P/E Non-GAAP values of FY1, FY2, FY3, and TTM periods.
Data from Seeking Alpha
4. However the $CBOE Holdings Inc(CBOE)$ has higher Revenue 3 Year & 5 Year(CAGR), higher EBITDA Growth and Net Income 3 Year. The same time, $CBOE Holdings Inc(CBOE)$ ‘s EPS YoY Growth Diluted is higher than $CME Group Inc(CME)$.
Editor’s Note：Diluted EPS is a performance metric used to assess a company's earnings per share if all convertible securities were exercised.
Data from Seeking Alpha
5. $CBOE Holdings Inc(CBOE)$ 's growth profit margin of 49.25% is not as high as $CME Group Inc(CME)$ 's 100%, but from the perspective of Return on Euity, Return on Total Assets and Asset Turnover, $CBOE Holdings Inc(CBOE)$ is better than $CME Group Inc(CME)$
In particular, we see that the total asset turnover rates of the two companies are 0.51 and 0.04 respectively, which means that with the same asset scale, $CBOE Holdings Inc(CBOE)$'s sales revenue is 10 times + that of $CME Group Inc(CME)$, indicating that $CBOE Holdings Inc(CBOE)$ 's operating efficiency is better than that of $CME Group Inc(CME)$ . It is a “small” but sophisticated companies have very strong growth in certain sub-categories.
Data from Seeking Alpha
Taken together, $CBOE Holdings Inc(CBOE)$ 's earnings growth and stock price return growth in the past three years are greater than $CME Group Inc(CME)$ .
The above is just a comparison of some fundamental data.
What are the actual highlights of the two companies in business development?
Why has $CBOE Holdings Inc(CBOE)$ continued to grow significantly in the past three years?
Which company are you more interested in?
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