Head-To-Head Comparison: Cboe Global Markets (CBOE) versus Its Competitors

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 rivals? We will compare Cboe Global Markets to related businesses based on the strength of its institutional ownership, valuation, analyst recommendations, risk, earnings, dividends and profitability.

Institutional and Insider Ownership

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 stock will outperform the market over the long term.

Profitability

This table compares Cboe Global Markets and its rivals’ 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%

Analyst Recommendations

This is a summary of recent ratings for Cboe Global Markets and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cboe Global Markets 3 5 9 0 2.35
Cboe Global Markets Competitors 201 1042 1147 31 2.42

Cboe Global Markets presently has a consensus price target of $105.81, indicating a potential downside of 7.21%. As a group, “Security & commodity brokers, dealers, exchanges & services” companies have a potential downside of 4.36%. Given Cboe Global Markets’ rivals stronger consensus rating and higher probable upside, analysts plainly believe Cboe Global Markets has less favorable growth aspects than its rivals.

Valuation and Earnings

This table compares Cboe Global Markets and its rivals top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Cboe Global Markets $3.43 billion $468.20 million 21.64
Cboe Global Markets Competitors $8.34 billion $682.35 million 27.23

Cboe Global Markets’ rivals have higher revenue and earnings than Cboe Global Markets. Cboe Global Markets is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Dividends

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 rivals, given its higher yield and lower payout ratio.

Risk and Volatility

Cboe Global Markets has a beta of 0.65, indicating that its stock price is 35% less volatile than the S&P 500. Comparatively, Cboe Global Markets’ rivals have a beta of 1.02, indicating that their average stock price is 2% more volatile than the S&P 500.

Summary

Cboe Global Markets rivals beat Cboe Global Markets 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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