Contrasting CME Group (NASDAQ:CME) and Galaxy Digital (NASDAQ:GLXY)

CME Group (NASDAQ:CME) and Galaxy Digital (NASDAQ:GLXY) are both finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, earnings, valuation, analyst recommendations, dividends, profitability and risk.

Valuation and Earnings

This table compares CME Group and Galaxy Digital”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CME Group	$6.52 billion	15.32	$4.07 billion	$11.79	23.56
Galaxy Digital	$61.36 billion	0.15	-$241.35 million	($0.65)	-37.02

CME Group has higher earnings, but lower revenue than Galaxy Digital. Galaxy Digital is trading at a lower price-to-earnings ratio than CME Group, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for CME Group and Galaxy Digital, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CME Group	3	6	9	0	2.33
Galaxy Digital	2	2	10	0	2.57

CME Group presently has a consensus price target of $288.56, indicating a potential upside of 3.89%. Galaxy Digital has a consensus price target of $38.67, indicating a potential upside of 60.71%. Given Galaxy Digital’s stronger consensus rating and higher probable upside, analysts clearly believe Galaxy Digital is more favorable than CME Group.

Risk & Volatility

CME Group has a beta of 0.24, suggesting that its stock price is 76% less volatile than the S&P 500. Comparatively, Galaxy Digital has a beta of 5.1, suggesting that its stock price is 410% more volatile than the S&P 500.

Insider & Institutional Ownership

87.7% of CME Group shares are held by institutional investors. 0.3% of CME Group shares are held by company insiders. Comparatively, 51.5% of Galaxy Digital shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares CME Group and Galaxy Digital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CME Group	63.30%	15.60%	2.20%
Galaxy Digital	-0.75%	-6.25%	-1.67%

Summary

CME Group beats Galaxy Digital on 8 of the 14 factors compared between the two stocks.

About CME Group

CME Group Inc., together with its subsidiaries, operates contract markets for the trading of futures and options on futures contracts worldwide. It offers futures and options products based on interest rates, equity indexes, foreign exchange, agricultural commodities, energy, and metals, as well as fixed income and foreign currency trading services. The company also provides clearing house services, including clearing, settling, and guaranteeing futures and options contracts, and cleared swaps products traded through its exchanges; and trade processing and risk mitigation services. In addition, the company offers a range of market data services, including real-time and historical data services. It serves professional traders, financial institutions, institutional and individual investors, corporations, manufacturers, producers, governments, and central banks. The company was formerly known as Chicago Mercantile Exchange Holdings Inc. and changed its name to CME Group Inc. in July 2007. The company was founded in 1898 and is headquartered in Chicago, Illinois.

About Galaxy Digital

Galaxy Digital Holdings Ltd. is a financial services and an investment management company, which engages in the digital asset, cryptocurrency, and block chain technology sectors. It operates through the following segments: Trading, Principal Investment, Asset Management, Investment Banking, Mining, and Corporate & Other. The Trading segment manages positions in cryptocurrency and other liquid digital assets contributed to the business at the outset and continues to invest and trade in those and related assets. The Principal Investment segment includes portfolio of private principal investments across the block chain ecosystem, including early- and later-stage equity, pre-launch network contributions, and other structured alternative investments. The Asset Management segment manages capital on behalf of third parties in exchange for management fees and performance-based compensation. The Investment Banking segment offers the spectrum of investment banking, including, but not limited to general corporate advisory, mergers and acquisition, transaction advisory, restructuring and capital rising. The Mining segment focuses to provide financial services for North American miners, through its partnerships. The Corporate & Other consists of the partnership’s unallocated corporate overhead and other unallocated costs not identifiable to any of the reportable segments. The company was founded by Michael Edward Novogratz on February 10, 2006 and is headquartered in New York, NY.