CPD vs CME Which Is More Profitable?

CPD and CME stocks are two popular investment options in the stock market. CPD stands for Constant Proportion Debt Obligations, which are complex financial instruments that offer a mix of fixed income and equity exposure. On the other hand, CME stocks refer to investments in the Chicago Mercantile Exchange, a leading derivatives exchange. Both CPD and CME stocks have their pros and cons, and understanding the differences between them can help investors make informed decisions in their portfolio management strategy.

CPD or CME?

When comparing CPD and CME, 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 CPD and CME.

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. CPD has a dividend yield of -%, while CME has a dividend yield of 4.15%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. CPD reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, CME reports a 5-year dividend growth of 16.23% year and a payout ratio of 103.88%.

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 CPD P/E ratio at -2.52 and CME's P/E ratio at 24.84. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. CPD P/B ratio is -9.72 while CME's P/B ratio is 3.02.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, CPD has seen a 5-year revenue growth of 0.00%, while CME's is 0.23%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with CPD's ROE at 1078.79% and CME's ROE at 12.51%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are zł1.70 for CPD and $234.08 for CME. Over the past year, CPD's prices ranged from zł1.61 to zł4.68, with a yearly change of 190.68%. CME's prices fluctuated between $190.70 and $249.02, with a yearly change of 30.58%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.