Analyzing CME Group (NASDAQ:CME) & CHECU (NASDAQ:CHECU)

CHECU (NASDAQ:CHECU) and CME Group (NASDAQ:CME) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, dividends, profitability, institutional ownership, risk, analyst recommendations and valuation.

Valuation and Earnings

This table compares CHECU and CME Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CHECU	N/A	N/A	N/A	N/A	N/A
CME Group	$6.52 billion	14.94	$4.07 billion	$11.79	22.97

CME Group has higher revenue and earnings than CHECU.

Profitability

This table compares CHECU and CME Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CHECU	N/A	N/A	N/A
CME Group	63.30%	15.60%	2.20%

Analyst Recommendations

This is a summary of recent ratings and target prices for CHECU and CME Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CHECU	0	0	0	0	0.00
CME Group	3	6	9	0	2.33

CME Group has a consensus target price of $288.56, suggesting a potential upside of 6.53%. Given CME Group’s stronger consensus rating and higher probable upside, analysts plainly believe CME Group is more favorable than CHECU.

Institutional & Insider Ownership

87.7% of CME Group shares are held by institutional investors. 0.3% of CME Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

CME Group beats CHECU on 9 of the 9 factors compared between the two stocks.

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.