Cboe Global Markets (NASDAQ: CBOE) and T. Rowe Price (NASDAQ:TROW) are both large-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, risk, dividends, earnings, analyst recommendations and institutional ownership.
This is a breakdown of current recommendations for Cboe Global Markets and T. Rowe Price, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Cboe Global Markets||1||6||4||0||2.27|
|T. Rowe Price||1||6||3||0||2.20|
Institutional and Insider Ownership
84.1% of Cboe Global Markets shares are owned by institutional investors. Comparatively, 72.8% of T. Rowe Price shares are owned by institutional investors. 1.9% of Cboe Global Markets shares are owned by insiders. Comparatively, 3.1% of T. Rowe Price shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Risk & Volatility
Cboe Global Markets has a beta of 0.62, meaning that its share price is 38% less volatile than the S&P 500. Comparatively, T. Rowe Price has a beta of 1.21, meaning that its share price is 21% more volatile than the S&P 500.
Earnings & Valuation
This table compares Cboe Global Markets and T. Rowe Price’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Cboe Global Markets||$2.23 billion||5.53||$400.60 million||$3.42||31.97|
|T. Rowe Price||$4.79 billion||5.33||$1.50 billion||$5.43||19.22|
T. Rowe Price has higher revenue and earnings than Cboe Global Markets. T. Rowe Price is trading at a lower price-to-earnings ratio than Cboe Global Markets, indicating that it is currently the more affordable of the two stocks.
This table compares Cboe Global Markets and T. Rowe Price’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Cboe Global Markets||17.80%||12.74%||6.93%|
|T. Rowe Price||31.07%||25.30%||19.64%|
Cboe Global Markets pays an annual dividend of $1.08 per share and has a dividend yield of 1.0%. T. Rowe Price pays an annual dividend of $2.80 per share and has a dividend yield of 2.7%. Cboe Global Markets pays out 31.6% of its earnings in the form of a dividend. T. Rowe Price pays out 51.6% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. T. Rowe Price has raised its dividend for 31 consecutive years. T. Rowe Price is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
T. Rowe Price beats Cboe Global Markets on 10 of the 17 factors compared between the two stocks.
About Cboe Global Markets
Cboe Global Markets, Inc., through its subsidiaries, operates as an options exchange in the United States. The company operates in five segments: Options, U.S. Equities, Futures, European Equities, and Global FX. The Options segment trades in listed market indexes. The U.S. Equities segment trades in listed cash equities; and provides exchange-traded products (ETP) transaction and ETP listing services. The Futures segment trades in futures, bitcoins, and other products. The European Equities segment trades in pan-European listed equities transaction services, ETPs, exchange-traded commodities, and international depository receipts. The Global FX segment provides institutional foreign exchange (FX) and non-deliverable forward FX transactions services. It has strategic relationships with S&P Dow Jones Indices, LLC; Frank Russell Company; FTSE International Limited; MSCI Inc.; DJI Opco, LLC; Cboe Vest Financial Group, Inc.; and Gemini Trust Company, 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.
About T. Rowe Price
T. Rowe Price Group, Inc. is a publicly owned investment manager. The firm provides its services to individuals, institutional investors, retirement plans, financial intermediaries, and institutions. It launches and manages equity and fixed income mutual funds. The firm invests in the public equity and fixed income markets across the globe. It employs fundamental and quantitative analysis with a bottom-up approach. The firm utilizes in-house and external research to make its investments. It employs socially responsible investing with a focus on environmental, social, and governance issues. It makes investment in late-stage venture capital transactions and usually invests between $3 million and $5 million. The firm was previously known as T. Rowe Group, Inc. and T. Rowe Price Associates, Inc. T. Rowe Price Group, Inc. was founded in 1937 and is based in Baltimore, Maryland, with additional offices in Colorado Springs, Colorado; Owings Mills, Maryland; San Francisco, California; Tampa, Florida; Toronto, Ontario; Hellerup, Denmark; Amsterdam, The Netherlands; Luxembourg, Grand Duchy of Luxembourg; Zurich, Switzerland; Dubai, United Arab Emirates; London, United Kingdom; Sydney, New South Wales; Hong Kong; Tokyo, Japan; Singapore; Frankfurt, Germany, Madrid, Spain, Milan, Italy, Stockholm, Sweden, Melbourne, Australia, and Amsterdam, Netherlands.
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