CHECU (NASDAQ:CHECU) versus CME Group (NASDAQ:CME) Critical Analysis

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

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for CME Group and CHECU, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CME Group	3	5	10	0	2.39
CHECU	0	0	0	0	0.00

CME Group currently has a consensus price target of $291.81, suggesting a potential upside of 8.16%. Given CME Group’s stronger consensus rating and higher probable upside, research analysts plainly believe CME Group is more favorable than CHECU.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CME Group	$6.52 billion	14.88	$4.07 billion	$11.79	22.88
CHECU	N/A	N/A	N/A	N/A	N/A

CME Group has higher revenue and earnings than CHECU.

Institutional and 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 hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

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

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

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.