WallStSmart

CME Group Inc (CME)vsHSBC Holdings PLC ADR (HSBC)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

HSBC Holdings PLC ADR generates 872% more annual revenue ($63.22B vs $6.51B). CME leads profitability with a 62.6% profit margin vs 35.2%. HSBC appears more attractively valued with a PEG of 1.02. HSBC earns a higher WallStSmart Score of 77/100 (B+).

CME

Buy

63

out of 100

Grade: C+

Growth: 7.3Profit: 7.5Value: 7.3Quality: 5.5
Piotroski: 1/9

HSBC

Strong Buy

77

out of 100

Grade: B+

Growth: 9.3Profit: 7.5Value: 10.0Quality: 4.5
Piotroski: 4/9Altman Z: 0.33
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CMEUndervalued (+43.8%)

Margin of Safety

+43.8%

Fair Value

$522.76

Current Price

$293.93

$228.83 discount

UndervaluedFair: $522.76Overvalued
HSBCUndervalued (+68.7%)

Margin of Safety

+68.7%

Fair Value

$280.80

Current Price

$81.21

$199.59 discount

UndervaluedFair: $280.80Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CME6 strengths · Avg: 9.0/10
Profit MarginProfitability
62.6%10/10

Keeps 63 of every $100 in revenue as profit

Operating MarginProfitability
63.8%10/10

Strong operational efficiency at 63.8%

Market CapQuality
$105.67B9/10

Large-cap with strong market position

Debt/EquityHealth
0.129/10

Conservative balance sheet, low leverage

EPS GrowthGrowth
35.0%8/10

Earnings expanding 35.0% YoY

Free Cash FlowQuality
$1.10B8/10

Generating 1.1B in free cash flow

HSBC6 strengths · Avg: 9.3/10
Market CapQuality
$264.52B10/10

Mega-cap, among the largest globally

Profit MarginProfitability
35.2%10/10

Keeps 35 of every $100 in revenue as profit

Operating MarginProfitability
55.2%10/10

Strong operational efficiency at 55.2%

Revenue GrowthGrowth
58.4%10/10

Revenue surging 58.4% year-over-year

P/E RatioValuation
12.8x8/10

Attractively priced relative to earnings

EPS GrowthGrowth
24.0%8/10

Earnings expanding 24.0% YoY

Areas to Watch

CME3 concerns · Avg: 3.0/10
P/E RatioValuation
26.3x4/10

Moderate valuation

Piotroski F-ScoreQuality
1/93/10

Weak financial health signals

PEG RatioValuation
5.842/10

Expensive relative to growth rate

HSBC2 concerns · Avg: 1.5/10
Altman Z-ScoreHealth
0.332/10

Distress zone — elevated risk

Debt/EquityHealth
2.791/10

Elevated debt levels

Comparative Analysis Report

WallStSmart Research

Bull Case : CME

The strongest argument for CME centers on Profit Margin, Operating Margin, Market Cap. Profitability is solid with margins at 62.6% and operating margin at 63.8%.

Bull Case : HSBC

The strongest argument for HSBC centers on Market Cap, Profit Margin, Operating Margin. Profitability is solid with margins at 35.2% and operating margin at 55.2%. Revenue growth of 58.4% demonstrates continued momentum.

Bear Case : CME

The primary concerns for CME are P/E Ratio, Piotroski F-Score, PEG Ratio.

Bear Case : HSBC

The primary concerns for HSBC are Altman Z-Score, Debt/Equity. Debt-to-equity of 2.79 is elevated, increasing financial risk.

Key Dynamics to Monitor

CME profiles as a mature stock while HSBC is a growth play — different risk/reward profiles.

HSBC carries more volatility with a beta of 0.47 — expect wider price swings.

HSBC is growing revenue faster at 58.4% — sustainability is the question.

HSBC generates stronger free cash flow (9.4B), providing more financial flexibility.

Bottom Line

HSBC scores higher overall (77/100 vs 63/100), backed by strong 35.2% margins and 58.4% revenue growth. CME offers better value entry with a 43.8% margin of safety. Both earn "Strong Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

CME Group Inc

FINANCIAL SERVICES · FINANCIAL DATA & STOCK EXCHANGES · USA

CME Group Inc. (Chicago Mercantile Exchange, Chicago Board of Trade, New York Mercantile Exchange, The Commodity Exchange) is an American global markets company. It is the world's largest financial derivatives exchange, and trades in asset classes that include agricultural products, currencies, energy, interest rates, metals, stock indexes and cryptocurrencies futures.

Visit Website →

HSBC Holdings PLC ADR

FINANCIAL SERVICES · BANKS - DIVERSIFIED · USA

HSBC Holdings plc offers banking and financial products and services globally. The company is headquartered in London, the United Kingdom.

Want to dig deeper into these stocks?