ASX (OTCMKTS:ASXFY) & CME Group (NASDAQ:CME) Financial Survey

CME Group (NASDAQ:CMEGet Free Report) and ASX (OTCMKTS:ASXFYGet Free Report) are both finance companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, profitability, institutional ownership, dividends, earnings, analyst recommendations and valuation.

Profitability

This table compares CME Group and ASX’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CME Group 55.99% 10.88% 1.73%
ASX N/A N/A N/A

Institutional and Insider Ownership

86.0% of CME Group shares are owned by institutional investors. 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 company will outperform the market over the long term.

Dividends

CME Group pays an annual dividend of $4.40 per share and has a dividend yield of 2.4%. ASX pays an annual dividend of $1.66 per share and has a dividend yield of 4.0%. CME Group pays out 55.9% of its earnings in the form of a dividend. ASX pays out 83.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. CME Group has increased its dividend for 13 consecutive years.

Earnings and Valuation

This table compares CME Group and ASX’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
CME Group $5.02 billion 13.34 $2.69 billion $7.87 23.65
ASX N/A N/A N/A $1.99 21.02

CME Group has higher revenue and earnings than ASX. ASX is trading at a lower price-to-earnings ratio than CME Group, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings and recommmendations for CME Group and ASX, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CME Group 1 3 7 0 2.55
ASX 1 0 0 0 1.00

CME Group currently has a consensus price target of $209.30, suggesting a potential upside of 12.45%. Given CME Group’s stronger consensus rating and higher possible upside, research analysts clearly believe CME Group is more favorable than ASX.

Summary

CME Group beats ASX on 13 of the 14 factors compared between the two stocks.

About CME Group

(Get Free Report)

CME Group Inc., together with its subsidiaries, operates contract markets for the trading of futures and options on futures contracts worldwide. It offers futures and options products based on interest rates, equity indexes, foreign exchange, agricultural commodities, energy, and metals, as well as fixed income and foreign currency trading services. The company also provides clearing house services, including clearing, settling, and guaranteeing futures and options contracts, and cleared swaps products traded through its exchanges; and trade processing and risk mitigation services. In addition, the company offers a range of market data services, including real-time and historical data services. It serves professional traders, financial institutions, institutional and individual investors, corporations, manufacturers, producers, governments, and central banks. The company was formerly known as Chicago Mercantile Exchange Holdings Inc. and changed its name to CME Group Inc. in July 2007. CME Group Inc. was founded in 1898 and is headquartered in Chicago, Illinois.

About ASX

(Get Free Report)

ASX Limited operates as a multi-asset class and integrated exchange company in Australia and internationally. It operates markets for a range of asset classes, including equities, fixed income, commodities, and energy. The company provides listings, trading, clearing, settlement, registry, technical and information, and other post-trade services; securities and derivatives exchange, and ancillary services; and central counterparty clearing services. It is also involved in the depository, and settlement activities, as well as delivery-versus-payment clearing of financial products; and provision of data and technology services to intermediaries, banks, information vendors, and software developers to enable them to make decisions, offer services to their clients, and connect with one another. The company was incorporated in 1987 and is based in Sydney, Australia.

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