Cboe Global Markets (NASDAQ: CBOE) is one of 23 publicly-traded 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 similar businesses based on the strength of its institutional ownership, earnings, analyst recommendations, valuation, profitability, dividends and risk.
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 | 12.72% | 16.72% | 8.98% |
| Cboe Global Markets Competitors | 15.47% | 16.54% | 5.64% |
Analyst Recommendations
This is a summary of current ratings and target prices for Cboe Global Markets and its peers, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Cboe Global Markets | 3 | 5 | 9 | 0 | 2.35 |
| Cboe Global Markets Competitors | 201 | 1042 | 1147 | 31 | 2.42 |
Cboe Global Markets currently has a consensus price target of $105.81, suggesting a potential downside of 7.12%. As a group, “Security & commodity brokers, dealers, exchanges & services” companies have a potential downside of 4.26%. Given Cboe Global Markets’ peers stronger consensus rating and higher possible upside, analysts plainly believe Cboe Global Markets has less favorable growth aspects than its peers.
Dividends
Cboe Global Markets pays an annual dividend of $1.68 per share and has a dividend yield of 1.5%. Cboe Global Markets pays out 31.9% of its earnings in the form of a dividend. As a group, “Security & commodity brokers, dealers, exchanges & services” companies pay a dividend yield of 1.4% and pay out 35.3% 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.
Insider and Institutional Ownership
80.7% of Cboe Global Markets shares are held by institutional investors. Comparatively, 73.9% 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 company insiders. Comparatively, 5.9% of shares of all “Security & commodity brokers, dealers, exchanges & services” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Valuation & Earnings
This table compares Cboe Global Markets and its peers top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Net Income | Price/Earnings Ratio | |
| Cboe Global Markets | $3.43 billion | $468.20 million | 21.62 |
| Cboe Global Markets Competitors | $8.34 billion | $682.35 million | 27.41 |
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.
Risk and Volatility
Cboe Global Markets has a beta of 0.65, indicating that its share price is 35% less volatile than the S&P 500. Comparatively, Cboe Global Markets’ peers have a beta of 1.02, indicating that their average share price is 2% more 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 worldwide. It operates through five segments: Options, North American Equities, Futures, European Equities, and Global FX. The Options segment trades in listed market indices. The North American Equities segment trades in listed U.S. and Canadian equities; and offers exchange-traded products (ETP) transaction and ETP listing services. The Futures segment trades in futures. The European Equities segment offers pan-European listed equities transaction services, ETPs, exchange-traded commodities, and international depository receipts, as well as ETP listings and clearing services. The Global FX segment provides institutional foreign exchange (FX) trading and non-deliverable forward FX transactions services. The company 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.