CME Group vs Intercontinental Exchange: Which Stock Allures?

The securities exchange industry is, of late, characterized by improving trading volumes. This in turn will help improve the clearing and transaction fees. The players in the industry have been witnessing expansion in their average daily volumes. Consolidations have been helping companies retain their market shares.

Companies stand to benefit from their expansive product offering, prudent expense management, operating leverage and higher listings.

Though the securities exchange industry is currently ranked at #194 (lies at the bottom half of the Zacks Industry Rank for 267 industries), it has outperformed the S&P 500 in a year by registering a 16.9% rally. The index on the other hand has climbed 12.0%.

Here we focus on two securities exchanges. Intercontinental Exchange, Inc. ICE , with a market capitalization of $38.2 billion, operates a network of global futures, equity and equity options exchanges as well as global clearing and data services throughout financial and commodity markets. Whereas CME Group CME , with a market capitalization of $43.0 billion, is the largest futures exchange in the world in terms of trading volumes as well as notional value traded.

Both stocks carry a Zacks Rank #3 (Hold). It will be interesting to note which stock is better positioned in terms of fundamentals.

Some better-ranked stocks from the finance sector are Green Dot Corp. GDOT and Atlas Financial Holdings, Inc. AFH , flaunting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1Rank stocks here .

Price Performance

Shares of both CME Group and Intercontinental Exchange lagged the industry in a year. While gained 16.4%, Intercontinental Exchange gained 15.2%. On a comparative analysis, CME Group has an edge over Intercontinental Exchange.


The price-to-book value metric is the best multiple, used for valuing an exchange. Compared with the securities exchange industry’s P/B ratio of…

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