London Stock Exchange Group (OTCMKTS:LNSTY – Get Free Report) and CME Group (NASDAQ:CME – Get Free Report) are both financial services companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, valuation, institutional ownership, profitability and risk.
Institutional & Insider Ownership
85.7% of CME Group shares are owned by institutional investors. 0.3% of CME Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Profitability
This table compares London Stock Exchange Group and CME Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| London Stock Exchange Group | N/A | N/A | N/A |
| CME Group | 57.83% | 12.32% | 2.37% |
Analyst Recommendations
This is a summary of current ratings and recommmendations for London Stock Exchange Group and CME Group, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| London Stock Exchange Group | 0 | 0 | 0 | 0 | N/A |
| CME Group | 2 | 4 | 4 | 0 | 2.20 |
CME Group has a consensus price target of $217.30, suggesting a potential upside of 0.43%. Given CME Group’s higher possible upside, analysts plainly believe CME Group is more favorable than London Stock Exchange Group.
Valuation & Earnings
This table compares London Stock Exchange Group and CME Group’s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| London Stock Exchange Group | N/A | N/A | N/A | N/A | N/A |
| CME Group | $5.58 billion | 13.96 | $3.23 billion | $8.87 | 24.39 |
CME Group has higher revenue and earnings than London Stock Exchange Group.
Summary
CME Group beats London Stock Exchange Group on 8 of the 8 factors compared between the two stocks.
About London Stock Exchange Group
London Stock Exchange Group plc operates as a financial markets infrastructure and data provider primarily in the United Kingdom and internationally. The company operates in three segments: Data & Analytics, Capital Markets, and Post Trade. It operates a range of international equity, fixed income, exchange-traded funds/exchange-traded products, and foreign exchange markets through the London Stock Exchange, AIM, Turquoise, FXall, Matching, and Tradeweb. The company also provides information and data products, such as indexes, benchmarks, real time pricing data and trade reporting, and reconciliation services, as well as network connection and services; market trading services; and clearing, risk management, capital optimization, and regulatory reporting solutions. In addition, it licenses capital markets; installs software; and provides maintenance, and events and media services. London Stock Exchange Group plc was founded in 1698 and is headquartered in London, the United Kingdom.
About CME Group
CME Group Inc., together with its subsidiaries, operates contract markets for the trading of futures and options on futures contracts worldwide. It offers futures and options products based on interest rates, equity indexes, foreign exchange, agricultural commodities, energy, and metals, as well as fixed income and foreign currency trading services. The company also provides clearing house services, including clearing, settling, and guaranteeing futures and options contracts, and cleared swaps products traded through its exchanges; and trade processing and risk mitigation services. In addition, the company offers a range of market data services, including real-time and historical data services. It serves professional traders, financial institutions, institutional and individual investors, corporations, manufacturers, producers, governments, and central banks. The company was formerly known as Chicago Mercantile Exchange Holdings Inc. and changed its name to CME Group Inc. in July 2007. The company was founded in 1898 and is headquartered in Chicago, Illinois.
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