Critical Analysis: Hong Kong Exchanges and Clearing (HKXCY) versus The Competition

Hong Kong Exchanges and Clearing (OTCMKTS:HKXCYGet Free Report) is one of 1,753 publicly-traded companies in the “Capital Markets” industry, but how does it contrast to its competitors? We will compare Hong Kong Exchanges and Clearing to similar companies based on the strength of its institutional ownership, risk, valuation, profitability, analyst recommendations, dividends and earnings.

Dividends

Hong Kong Exchanges and Clearing pays an annual dividend of $1.52 per share and has a dividend yield of 2.9%. Hong Kong Exchanges and Clearing pays out 38.4% of its earnings in the form of a dividend. As a group, “Capital Markets” companies pay a dividend yield of 3.2% and pay out 28.3% of their earnings in the form of a dividend. Hong Kong Exchanges and Clearing lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Profitability

This table compares Hong Kong Exchanges and Clearing and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Hong Kong Exchanges and Clearing N/A N/A N/A
Hong Kong Exchanges and Clearing Competitors 2,637.26% 9.95% 3.66%

Analyst Recommendations

This is a breakdown of current ratings for Hong Kong Exchanges and Clearing and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hong Kong Exchanges and Clearing 0 1 0 0 2.00
Hong Kong Exchanges and Clearing Competitors 5213 19528 21831 600 2.38

As a group, “Capital Markets” companies have a potential upside of 22.16%. Given Hong Kong Exchanges and Clearing’s competitors stronger consensus rating and higher possible upside, analysts clearly believe Hong Kong Exchanges and Clearing has less favorable growth aspects than its competitors.

Institutional and Insider Ownership

0.2% of Hong Kong Exchanges and Clearing shares are held by institutional investors. Comparatively, 30.6% of shares of all “Capital Markets” companies are held by institutional investors. 13.2% of shares of all “Capital Markets” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Hong Kong Exchanges and Clearing and its competitors top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Hong Kong Exchanges and Clearing N/A N/A 13.13
Hong Kong Exchanges and Clearing Competitors $28.47 billion $396.21 million 19.60

Hong Kong Exchanges and Clearing’s competitors have higher revenue and earnings than Hong Kong Exchanges and Clearing. Hong Kong Exchanges and Clearing is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Summary

Hong Kong Exchanges and Clearing competitors beat Hong Kong Exchanges and Clearing on 13 of the 13 factors compared.

Hong Kong Exchanges and Clearing Company Profile

(Get Free Report)

Hong Kong Exchanges and Clearing Limited, together with its subsidiaries, owns and operates stock exchanges and futures exchanges, and related clearing houses in Hong Kong, Mainland China, and the United Kingdom. It operates through Cash, Equity and Financial Derivatives, Commodities, and Data and Connectivity segments. The Cash segment covers various equity products traded on the cash market platforms of the Stock Exchange of Hong Kong Limited, the Shanghai Stock Exchange, and the Shenzhen Stock Exchange; clearing, settlement and custodian, listing, depository, and nominee services; and other related activities. The Equity and Financial Derivatives segment provides and maintains trading platforms for a range of equity and financial derivative products, such as stock and equity index futures and options, derivative warrants, callable bull/bear contracts and warrants, and over the counter (OTC) derivatives contracts. The Commodities segment operates an exchange for the trading of base, ferrous, and precious metals futures and options contracts in the United Kingdom; and operates Qianhai Mercantile Exchange Co., Ltd., a commodity trading platform in the Mainland. This segment also covers commodities contracts traded on Futures Exchange. The Data and Connectivity segment offers various services that provides access to the platform and infrastructure, as well as services of BayConnect Technology Company Limited; network, terminal user, data line and software sublicense, and hosting services; and sells market data relating to the Hong Kong cash and derivatives markets. The company serves issuers and investors. Hong Kong Exchanges and Clearing Limited was incorporated in 1999 and is based in Central, Hong Kong.

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