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CME vs V

CME
CME Group Inc.
NEUTRAL
Price
$285.04
Market Cap
$102.78B
Sector
Financial Services
AI Confidence
75%
V
Visa Inc.
BULLISH
Price
$302.24
Market Cap
$582.73B
Sector
Financial Services
AI Confidence
75%

Valuation

P/E Ratio
CME
27.62
V
28.35
Forward P/E
CME
27.49
V
20.79
P/B Ratio
CME
3.64
V
15.09
P/S Ratio
CME
16.1
V
14.08
EV/EBITDA
CME
23.14
V
20.06

Profitability

Gross Margin
CME
100.0%
V
97.78%
Operating Margin
CME
63.39%
V
68.3%
Profit Margin
CME
58.95%
V
50.23%
ROE
CME
13.35%
V
53.95%
ROA
CME
1.6%
V
18.36%

Growth

Revenue Growth
CME
-3.0%
V
14.6%
Earnings Growth
CME
-0.4%
V
17.4%

Financial Health

Debt/Equity
CME
0.13
V
0.55
Current Ratio
CME
1.02
V
1.11
Quick Ratio
CME
0.02
V
0.72

Dividends

Dividend Yield
CME
1.75%
V
0.89%
Payout Ratio
CME
103.68%
V
22.91%

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
V BULLISH

V shows bullish fundamentals based on deterministic rules. Financial strength is strong (F-Score 6/9). Key strengths include strong valuation and growth metrics.

Strengths
Strong profitability (50.2% margin)
Strong ROE of 54.0%
Risks
Premium vs Graham Number ($69.32)

Compare Another Pair

CME vs V: Head-to-Head Comparison

This page compares CME Group Inc. (CME) and Visa Inc. (V) 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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