WallStSmart

CME Group Inc (CME)vsNasdaq Inc (NDAQ)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

CME Group Inc generates 24% more annual revenue ($6.51B vs $5.25B). CME leads profitability with a 62.6% profit margin vs 34.1%. NDAQ appears more attractively valued with a PEG of 2.08. NDAQ earns a higher WallStSmart Score of 69/100 (B-).

CME

Buy

63

out of 100

Grade: C+

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

NDAQ

Strong Buy

69

out of 100

Grade: B-

Growth: 7.3Profit: 8.5Value: 10.0Quality: 6.5
Piotroski: 5/9
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
NDAQUndervalued (+44.4%)

Margin of Safety

+44.4%

Fair Value

$144.61

Current Price

$86.27

$58.34 discount

UndervaluedFair: $144.61Overvalued

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

NDAQ3 strengths · Avg: 9.3/10
Profit MarginProfitability
34.1%10/10

Keeps 34 of every $100 in revenue as profit

Operating MarginProfitability
47.6%10/10

Strong operational efficiency at 47.6%

EPS GrowthGrowth
47.6%8/10

Earnings expanding 47.6% YoY

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

NDAQ2 concerns · Avg: 4.0/10
PEG RatioValuation
2.084/10

Expensive relative to growth rate

P/E RatioValuation
27.9x4/10

Moderate valuation

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 : NDAQ

The strongest argument for NDAQ centers on Profit Margin, Operating Margin, EPS Growth. Profitability is solid with margins at 34.1% and operating margin at 47.6%. Revenue growth of 13.4% demonstrates continued momentum.

Bear Case : CME

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

Bear Case : NDAQ

The primary concerns for NDAQ are PEG Ratio, P/E Ratio.

Key Dynamics to Monitor

NDAQ carries more volatility with a beta of 1.03 — expect wider price swings.

NDAQ is growing revenue faster at 13.4% — 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

NDAQ scores higher overall (69/100 vs 63/100), backed by strong 34.1% margins and 13.4% 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.

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Nasdaq Inc

FINANCIAL SERVICES · FINANCIAL DATA & STOCK EXCHANGES · USA

Nasdaq, Inc. is an American multinational financial services corporation that owns and operates stock exchanges in the United States and Europe. It is headquartered in New York City.

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