CME vs Intercontinental Exchange Which Is More Lucrative?

CME Group and Intercontinental Exchange (ICE) are two of the largest exchanges in the world, both serving as key players in the financial markets. CME Group is known for its wide range of derivatives products, while ICE specializes in energy and commodity trading. Investors often compare these two stocks due to their similar market capitalization and influence in the industry. Understanding the differences and similarities between CME Group and ICE stocks is essential for making informed investment decisions.

CME or Intercontinental Exchange?

When comparing CME and Intercontinental Exchange, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between CME and Intercontinental Exchange.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. CME has a dividend yield of 4.15%, while Intercontinental Exchange has a dividend yield of 0.87%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. CME reports a 5-year dividend growth of 16.23% year and a payout ratio of 103.88%. On the other hand, Intercontinental Exchange reports a 5-year dividend growth of 11.84% year and a payout ratio of 42.07%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with CME P/E ratio at 24.84 and Intercontinental Exchange's P/E ratio at 36.77. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. CME P/B ratio is 3.02 while Intercontinental Exchange's P/B ratio is 3.28.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, CME has seen a 5-year revenue growth of 0.23%, while Intercontinental Exchange's is 0.61%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with CME's ROE at 12.51% and Intercontinental Exchange's ROE at 9.18%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $234.08 for CME and $155.43 for Intercontinental Exchange. Over the past year, CME's prices ranged from $190.70 to $249.02, with a yearly change of 30.58%. Intercontinental Exchange's prices fluctuated between $121.56 and $167.99, with a yearly change of 38.20%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.