WallStSmart

CME Group Inc (CME)vsMoodys Corporation (MCO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Moodys Corporation generates 19% more annual revenue ($7.72B vs $6.51B). CME leads profitability with a 62.6% profit margin vs 31.9%. MCO appears more attractively valued with a PEG of 1.91. MCO earns a higher WallStSmart Score of 71/100 (B).

CME

Buy

63

out of 100

Grade: C+

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

MCO

Strong Buy

71

out of 100

Grade: B

Growth: 8.0Profit: 9.5Value: 10.0Quality: 6.8
Piotroski: 6/9Altman Z: 2.99
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CMEUndervalued (+40.6%)

Margin of Safety

+40.6%

Fair Value

$522.76

Current Price

$307.32

$215.44 discount

UndervaluedFair: $522.76Overvalued
MCOUndervalued (+32.0%)

Margin of Safety

+32.0%

Fair Value

$639.76

Current Price

$435.12

$204.64 discount

UndervaluedFair: $639.76Overvalued

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
$112.83B9/10

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

MCO5 strengths · Avg: 9.8/10
Return on EquityProfitability
62.1%10/10

Every $100 of equity generates 62 in profit

Profit MarginProfitability
31.9%10/10

Keeps 32 of every $100 in revenue as profit

Operating MarginProfitability
42.1%10/10

Strong operational efficiency at 42.1%

EPS GrowthGrowth
57.6%10/10

Earnings expanding 57.6% YoY

Market CapQuality
$77.02B9/10

Large-cap with strong market position

Areas to Watch

CME3 concerns · Avg: 3.0/10
P/E RatioValuation
28.1x4/10

Moderate valuation

Piotroski F-ScoreQuality
1/93/10

Weak financial health signals

PEG RatioValuation
5.932/10

Expensive relative to growth rate

MCO3 concerns · Avg: 4.0/10
PEG RatioValuation
1.914/10

Expensive relative to growth rate

P/E RatioValuation
31.6x4/10

Premium valuation, high expectations priced in

Price/BookValuation
19.1x4/10

Trading at 19.1x book value

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 : MCO

The strongest argument for MCO centers on Return on Equity, Profit Margin, Operating Margin. Profitability is solid with margins at 31.9% and operating margin at 42.1%. Revenue growth of 13.0% demonstrates continued momentum.

Bear Case : CME

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

Bear Case : MCO

The primary concerns for MCO are PEG Ratio, P/E Ratio, Price/Book.

Key Dynamics to Monitor

MCO carries more volatility with a beta of 1.44 — expect wider price swings.

MCO is growing revenue faster at 13.0% — sustainability is the question.

CME generates stronger free cash flow (1.1B), providing more financial flexibility.

Monitor FINANCIAL DATA & STOCK EXCHANGES industry trends, competitive dynamics, and regulatory changes.

Bottom Line

MCO scores higher overall (71/100 vs 63/100), backed by strong 31.9% margins and 13.0% revenue growth. CME offers better value entry with a 40.6% 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 →

Moodys Corporation

FINANCIAL SERVICES · FINANCIAL DATA & STOCK EXCHANGES · USA

Moody's Corporation, often referred to as Moody's, is an American business and financial services company. It is the holding company for Moody's Investors Service (MIS), an American credit rating agency, and Moody's Analytics (MA), an American provider of financial analysis software and services.

Want to dig deeper into these stocks?