Analyzing TMX Group (TMXXF) and The Competition

TMX Group (OTCMKTS:TMXXF) is one of 1,753 public companies in the “Capital Markets” industry, but how does it weigh in compared to its competitors? We will compare TMX Group to similar companies based on the strength of its risk, institutional ownership, analyst recommendations, earnings, dividends, profitability and valuation.

Profitability

This table compares TMX Group and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TMX Group	N/A	N/A	N/A
TMX Group Competitors	2,701.92%	78.14%	3.66%

Dividends

TMX Group pays an annual dividend of $1.60 per share and has a dividend yield of 4.1%. TMX Group pays out 86.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Capital Markets” companies pay a dividend yield of 3.1% and pay out 28.1% of their earnings in the form of a dividend.

Insider & Institutional Ownership

7.1% of TMX Group shares are held by institutional investors. Comparatively, 30.6% of shares of all “Capital Markets” companies are held by institutional investors. 13.2% of shares of all “Capital Markets” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares TMX Group and its competitors gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
TMX Group	N/A	N/A	20.81
TMX Group Competitors	$28.50 billion	$396.19 million	20.41

TMX Group’s competitors have higher revenue and earnings than TMX Group. TMX Group is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Analyst Recommendations

This is a summary of recent ratings and price targets for TMX Group and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TMX Group	0	0	5	1	3.17
TMX Group Competitors	5241	19624	21929	605	2.38

As a group, “Capital Markets” companies have a potential upside of 21.30%. Given TMX Group’s competitors higher probable upside, analysts clearly believe TMX Group has less favorable growth aspects than its competitors.

Summary

TMX Group competitors beat TMX Group on 8 of the 13 factors compared.

TMX Group Company Profile

TMX Group Limited operates exchanges, markets, and clearinghouses primarily for capital markets in Canada, the United States, the United Kingdom, Germany, and internationally. It operates through four segments: Global Solutions, Insights & Analytics; Capital Formation; Derivatives Trading & Clearing; and Equities and Fixed Income Trading & Clearing. The Global Solutions, Insights & Analytics segment delivers equities and index data, as well as integrated data sets for the proprietary and third party analytics to help clients in making trading and investment decisions; and provides solutions to European and global wholesale energy markets for price discovery, trade execution, post-trade transparency, and straight through processing. The Capital Formation segment operates Toronto Stock Exchange, a national stock exchange for the senior equities market; TSX Venture Exchange, a national stock exchange for the public venture equity market; and TSX Trust that provides corporate trust, registrar, transfer agency, and related services to reporting issuers and private companies. The Derivatives Trading & Clearing segment operates Montreal Exchange, a national derivatives exchange; Canadian Derivatives Clearing Corporation, a clearinghouse for options and futures contracts; BOX, a US equity operations market; and various over-the-counter products and fixed income repurchase agreements. The Equities and Fixed Income Trading & Clearing segment engages in the trading operations of Toronto Stock Exchange, TSX Venture Exchange, and TSX Alpha Exchange; CDS Clearing, an automated facility for the clearing and settlement of equities and fixed income transactions, and custody of securities; and provision of fixed income inter-dealer brokerage services. The company was formerly known as Maple Group Acquisition Corporation and changed its name to TMX Group Limited in August 2012. TMX Group Limited was incorporated in 2011 and is headquartered in Toronto, Canada.