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CME vs JPM

CME
CME Group Inc.
NEUTRAL
Price
$285.04
Market Cap
$102.78B
Sector
Financial Services
AI Confidence
75%
JPM
JPMorgan Chase & Co.
NEUTRAL
Price
$313.68
Market Cap
$846.01B
Sector
Financial Services
AI Confidence
85%

Valuation

P/E Ratio
CME
27.62
JPM
15.68
Forward P/E
CME
27.49
JPM
13.42
P/B Ratio
CME
3.64
JPM
2.47
P/S Ratio
CME
16.1
JPM
5.03
EV/EBITDA
CME
23.14
JPM
--

Profitability

Gross Margin
CME
100.0%
JPM
0.0%
Operating Margin
CME
63.39%
JPM
41.06%
Profit Margin
CME
58.95%
JPM
33.91%
ROE
CME
13.35%
JPM
16.13%
ROA
CME
1.6%
JPM
1.35%

Growth

Revenue Growth
CME
-3.0%
JPM
2.5%
Earnings Growth
CME
-0.4%
JPM
-3.6%

Financial Health

Debt/Equity
CME
0.13
JPM
--
Current Ratio
CME
1.02
JPM
--
Quick Ratio
CME
0.02
JPM
--

Dividends

Dividend Yield
CME
1.75%
JPM
1.91%
Payout Ratio
CME
103.68%
JPM
28.97%

AI Verdict

CME NEUTRAL

CME Group trades near fair value with strong profitability and a dominant market position in financial derivatives, supported by a 58.95% profit margin and 63.39% operating margin—both well above sector averages. However, near-term revenue contraction (-3.0% YoY) and stagnant earnings growth (0.0% YoY) raise concerns about cyclical headwinds, while the P/E of 27.6x is above the sector average of 21.8x, limiting upside. Price momentum remains solid with a 1Y return of +33.3%, but insider selling and a 103.7% payout ratio signal caution. Analysts are unanimous in a 'hold' rating, aligning with our neutral stance given mixed fundamentals and valuation.

Strengths
Exceptional profitability with 58.95% net margin and 63.39% operating margin, significantly above sector average of 24.08%
Dominant market position in futures and options with $102.78B market cap, the largest in its peer group
Low leverage with Debt/Equity of 0.13, well below sector average of 0.82 and peers like MCO (1.81)
Risks
Revenue declining YoY (-3.0%) amid lower trading volumes, suggesting cyclical or structural demand weakness
Elevated valuation: P/E of 27.6x vs sector average of 21.8x and peer ICE at 27.7x, offering limited margin of safety
Payout ratio of 103.68% exceeds earnings, indicating dividend is not fully covered by net income and may not be sustainable long-term
JPM NEUTRAL

JPM exhibits a concerning Piotroski F-Score of 2/9, indicating weak short-term fundamental health, and currently trades at a significant premium to both its Graham Number ($239.11) and Intrinsic Value ($140.07). While the company maintains a strong ROE of 16.13% and dominant market positioning, negative YoY earnings growth (-3.60%) and bearish insider activity from the CEO and CFO signal internal caution. The stock's current price of $313.68 suggests the market is pricing in a growth premium that is not currently supported by the deterministic health or value metrics.

Strengths
Strong profitability with a 33.91% profit margin
Robust Return on Equity (ROE) of 16.13%
Conservative dividend payout ratio of 28.97%
Risks
Very low Piotroski F-Score (2/9) suggesting deteriorating financial health
Significant overvaluation relative to Intrinsic Value ($140.07)
Negative Year-over-Year earnings growth (-3.60%)

Compare Another Pair

CME vs JPM: Head-to-Head Comparison

This page compares CME Group Inc. (CME) and JPMorgan Chase & Co. (JPM) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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