GME vs CME Which Is Stronger?

GameStop (GME) and CME Group Inc. (CME) are two well-known stocks in the market that cater to different sectors. GME is a retail company specializing in video games, while CME is a financial market company that operates as a futures exchange. Both stocks have seen fluctuations in their prices due to various factors, making them popular choices among investors. Understanding the similarities and differences between GME and CME stocks can help investors make informed decisions in their investment strategies.

GME or CME?

When comparing GME 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 GME 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. GME has a dividend yield of 24.66%, while CME has a dividend yield of 4.85%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. GME 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 91.69%.

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 GME P/E ratio at 1.57 and CME's P/E ratio at 23.65. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. GME P/B ratio is 1.10 while CME's P/B ratio is 2.88.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, GME has seen a 5-year revenue growth of 3.00%, while CME's is 0.23%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with GME's ROE at 85.65% and CME's ROE at 12.51%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are HK$0.36 for GME and $225.59 for CME. Over the past year, GME's prices ranged from HK$0.07 to HK$0.42, with a yearly change of 491.55%. CME's prices fluctuated between $190.70 and $230.36, with a yearly change of 20.80%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.