Critical Review: Euronext (EUXTF) versus The Competition

Euronext (OTCMKTS:EUXTF) is one of 1,747 publicly-traded companies in the “Capital Markets” industry, but how does it compare to its peers? We will compare Euronext to related businesses based on the strength of its earnings, analyst recommendations, dividends, valuation, profitability, risk and institutional ownership.

Institutional and Insider Ownership

30.6% of shares of all “Capital Markets” companies are held by institutional investors. 13.0% of shares of all “Capital Markets” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Euronext and its peers top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Euronext	N/A	N/A	198.57
Euronext Competitors	$2.39 billion	$397.44 million	10.50

Euronext’s peers have higher revenue and earnings than Euronext. Euronext is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Euronext and its peers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Euronext	0	1	1	0	2.50
Euronext Competitors	5335	19673	21877	612	2.37

As a group, “Capital Markets” companies have a potential upside of 21.84%. Given Euronext’s peers higher probable upside, analysts clearly believe Euronext has less favorable growth aspects than its peers.

Profitability

This table compares Euronext and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Euronext	N/A	N/A	N/A
Euronext Competitors	267.78%	78.34%	3.56%

Summary

Euronext peers beat Euronext on 8 of the 11 factors compared.

About Euronext

Euronext N.V., together with its subsidiaries, operates securities and derivatives exchanges in Continental Europe, Ireland, and Norway. The company offers a range of exchange and corporate services, including security listings, cash and derivatives trading, and market data dissemination. It also provides listing venues and cash equities trading venues; and various marketplaces, including multilateral trading facilities for investors, broker-dealers, and other market participants to meet directly to buy and sell cash equities, fixed income securities, and exchange traded products. In addition, the company offers options contracts based on the blue-chip equities listed on Euronext; commodity derivatives, such as milling wheat futures contracts; and post-trade services, as well as distributes and sells real-time, historic, and reference data to data vendors, and financial institutions and individual investors. Further, it provides equity, debt, fund and ETF listing, corporate and investor, cash trading, foreign exchange trading, derivatives trading, fixed income trading, and power trading services. Additionally, the company offers technology solutions and services to exchanges, venue operators, and financial institutions; colocation, network and proximity services; and regulatory reporting services. The company was formerly known as Euronext Group N.V. and changed its name to Euronext N.V. in May 2014. Euronext N.V. was founded in 2000 and is headquartered in Amsterdam, the Netherlands.