Cboe Global Markets (NASDAQ: CBOE) is one of 23 public companies in the “Security & commodity brokers, dealers, exchanges & services” industry, but how does it compare to its competitors? We will compare Cboe Global Markets to related businesses based on the strength of its analyst recommendations, valuation, dividends, earnings, risk, profitability and institutional ownership.
Risk and Volatility
Cboe Global Markets has a beta of 0.65, meaning that its stock price is 35% less volatile than the S&P 500. Comparatively, Cboe Global Markets’ competitors have a beta of 1.02, meaning that their average stock price is 2% more volatile than the S&P 500.
80.7% of Cboe Global Markets shares are owned by institutional investors. Comparatively, 73.9% of shares of all “Security & commodity brokers, dealers, exchanges & services” companies are owned by institutional investors. 0.6% of Cboe Global Markets shares are owned by company insiders. Comparatively, 5.9% of shares of all “Security & commodity brokers, dealers, exchanges & services” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Earnings and Valuation
This table compares Cboe Global Markets and its competitors gross revenue, earnings per share and valuation.
|Gross Revenue||Net Income||Price/Earnings Ratio|
|Cboe Global Markets||$3.43 billion||$468.20 million||21.52|
|Cboe Global Markets Competitors||$8.34 billion||$682.35 million||27.01|
Cboe Global Markets’ competitors have higher revenue and earnings than Cboe Global Markets. Cboe Global Markets is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.
This is a breakdown of current ratings and recommmendations for Cboe Global Markets and its competitors, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Cboe Global Markets||2||5||9||0||2.44|
|Cboe Global Markets Competitors||199||1040||1146||31||2.42|
Cboe Global Markets currently has a consensus target price of $105.93, indicating a potential downside of 6.60%. As a group, “Security & commodity brokers, dealers, exchanges & services” companies have a potential downside of 3.38%. Given Cboe Global Markets’ competitors higher probable upside, analysts clearly believe Cboe Global Markets has less favorable growth aspects than its competitors.
This table compares Cboe Global Markets and its competitors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Cboe Global Markets||12.72%||16.72%||8.98%|
|Cboe Global Markets Competitors||15.47%||16.54%||5.64%|
Cboe Global Markets pays an annual dividend of $1.68 per share and has a dividend yield of 1.5%. Cboe Global Markets pays out 31.9% of its earnings in the form of a dividend. As a group, “Security & commodity brokers, dealers, exchanges & services” companies pay a dividend yield of 1.4% and pay out 35.3% of their earnings in the form of a dividend. Cboe Global Markets is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.
Cboe Global Markets beats its competitors on 8 of the 15 factors compared.
Cboe Global Markets Company Profile
Cboe Global Markets, Inc., through its subsidiaries, operates as an options exchange worldwide. It operates through five segments: Options, North American Equities, Futures, European Equities, and Global FX. The Options segment trades in listed market indices. The North American Equities segment trades in listed U.S. and Canadian equities; and offers exchange-traded products (ETP) transaction and ETP listing services. The Futures segment trades in futures. The European Equities segment offers pan-European listed equities transaction services, ETPs, exchange-traded commodities, and international depository receipts, as well as ETP listings and clearing services. The Global FX segment provides institutional foreign exchange (FX) trading and non-deliverable forward FX transactions services. The company has strategic relationships with S&P Dow Jones Indices, LLC; FTSE International Limited; Frank Russell Company; MSCI Inc.; and DJI Opco, LLC. The company was formerly known as CBOE Holdings, Inc. and changed its name to Cboe Global Markets, Inc. in October 2017. Cboe Global Markets, Inc. was founded in 1973 and is headquartered in Chicago, Illinois.
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