Reviewing Cboe Global Markets (CBOE) and Its Rivals

Cboe Global Markets (NYSE: CBOE) is one of 23 public companies in the “Security & commodity brokers, dealers, exchanges & services” industry, but how does it weigh in compared to its peers? We will compare Cboe Global Markets to related businesses based on the strength of its risk, dividends, analyst recommendations, profitability, valuation, earnings and institutional ownership.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Cboe Global Markets and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cboe Global Markets 1 1 2 0 2.25
Cboe Global Markets Competitors 193 1005 1080 29 2.41

Cboe Global Markets presently has a consensus price target of $99.00, suggesting a potential upside of 2.89%. As a group, “Security & commodity brokers, dealers, exchanges & services” companies have a potential downside of 3.01%. Given Cboe Global Markets’ higher possible upside, equities research analysts clearly believe Cboe Global Markets is more favorable than its peers.

Dividends

Cboe Global Markets pays an annual dividend of $1.68 per share and has a dividend yield of 1.7%. Cboe Global Markets pays out 35.5% of its earnings in the form of a dividend. As a group, “Security & commodity brokers, dealers, exchanges & services” companies pay a dividend yield of 1.5% and pay out 36.0% of their earnings in the form of a dividend. Cboe Global Markets is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.

Profitability

This table compares Cboe Global Markets and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cboe Global Markets 14.65% 17.48% 10.66%
Cboe Global Markets Competitors 15.87% 20.53% 7.03%

Earnings & Valuation

This table compares Cboe Global Markets and its peers gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Cboe Global Markets $2.50 billion $374.40 million 20.34
Cboe Global Markets Competitors $8.04 billion $638.76 million 29.15

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

Insider & Institutional Ownership

80.3% of Cboe Global Markets shares are held by institutional investors. Comparatively, 72.6% of shares of all “Security & commodity brokers, dealers, exchanges & services” companies are held by institutional investors. 0.6% of Cboe Global Markets shares are held by insiders. Comparatively, 6.1% of shares of all “Security & commodity brokers, dealers, exchanges & services” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Volatility and Risk

Cboe Global Markets has a beta of 0.63, indicating that its stock price is 37% less volatile than the S&P 500. Comparatively, Cboe Global Markets’ peers have a beta of 0.46, indicating that their average stock price is 54% less volatile than the S&P 500.

Summary

Cboe Global Markets peers beat Cboe Global Markets on 8 of the 15 factors compared.

About Cboe Global Markets

Cboe Global Markets, Inc., through its subsidiaries, operates as an options exchange in the United States. It operates in five segments: Options, U.S. Equities, Futures, European Equities, and Global FX. The Options segment trades in listed market indices. The U.S. Equities segment trades in listed equities; and offers exchange-traded products (ETP) transaction and ETP listing services. The Futures segment trades in futures. The European Equities segment trades in pan-European listed cash equities transaction services, ETPs, exchange-traded commodities, and international depository receipts that occur on the recognized investment exchange. This segment also provides listed cash equities and ETPs routed transaction services, as well as listing services. The Global FX segment provides institutional foreign exchange (FX) and non-deliverable forward FX transactions services. It 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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