Deutsche Boerse (OTCMKTS: DBOEY) and Intercontinental Exchange (NYSE:ICE) are both large-cap finance companies, but which is the better stock? We will compare the two companies based on the strength of their analyst recommendations, risk, profitability, valuation, dividends, institutional ownership and earnings.

Volatility & Risk

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Deutsche Boerse has a beta of 0.76, meaning that its share price is 24% less volatile than the S&P 500. Comparatively, Intercontinental Exchange has a beta of 0.64, meaning that its share price is 36% less volatile than the S&P 500.

Insider and Institutional Ownership

0.1% of Deutsche Boerse shares are held by institutional investors. Comparatively, 90.7% of Intercontinental Exchange shares are held by institutional investors. 1.5% of Intercontinental Exchange shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Dividends

Deutsche Boerse pays an annual dividend of $0.17 per share and has a dividend yield of 1.3%. Intercontinental Exchange pays an annual dividend of $0.96 per share and has a dividend yield of 1.3%. Intercontinental Exchange pays out 32.5% of its earnings in the form of a dividend. Intercontinental Exchange has increased its dividend for 4 consecutive years. Intercontinental Exchange is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Earnings and Valuation

This table compares Deutsche Boerse and Intercontinental Exchange’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Deutsche Boerse $3.17 billion 8.27 $988.22 million N/A N/A
Intercontinental Exchange $5.83 billion 7.33 $2.51 billion $2.95 24.88

Intercontinental Exchange has higher revenue and earnings than Deutsche Boerse.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Deutsche Boerse and Intercontinental Exchange, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Deutsche Boerse 0 4 0 0 2.00
Intercontinental Exchange 0 2 11 0 2.85

Intercontinental Exchange has a consensus target price of $78.31, indicating a potential upside of 6.70%. Given Intercontinental Exchange’s stronger consensus rating and higher possible upside, analysts clearly believe Intercontinental Exchange is more favorable than Deutsche Boerse.

Profitability

This table compares Deutsche Boerse and Intercontinental Exchange’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Deutsche Boerse 31.94% 17.82% 0.55%
Intercontinental Exchange 43.09% 10.83% 2.21%

Summary

Intercontinental Exchange beats Deutsche Boerse on 11 of the 16 factors compared between the two stocks.

About Deutsche Boerse

Deutsche Börse Aktiengesellschaft operates as an exchange organization in Europe, the United States, and the Asia-Pacific. Its activities cover securities and derivatives trading, clearing, settlement, and custody services; market data; and development and operation of electronic trading systems. The company operates through four segments: Eurex, Xetra, Clearstream, and Market Data + Services. The Eurex segment engages in the electronic trading of European derivatives, commodities, and foreign exchange. It operates Eurex Repo over the counter (OTC) trading platform; electronic clearing architecture; and a central counterparty for on-and-off exchange derivatives and repo transactions. The Xetra segment operates in the cash market through Xetra and Borse Frankfurt and Tradegate trading venues; operates Eurex bonds OTC trading platform; operates as a central counterparty for equities and bonds; and provides admission of securities to listing. The Clearstream segment offers custody and settlement services for domestic and international securities; global securities financing services and collateral management; and investment and hedge funds services. The Market Data + Services segment distributes licenses for trading and market signals; develops and sells indices; provides technology solutions for external customers; and trades in participant connectivity. Deutsche Börse Aktiengesellschaft is headquartered in Frankfurt, Germany.

About Intercontinental Exchange

Intercontinental Exchange, Inc. operates regulated exchanges, clearing houses, and listings venues for financial and commodity markets in the United States, the United Kingdom, Continental Europe, Asia, Israel, and Canada. It operates through two segments, Trading and Clearing; and Data and Listings. The company operates marketplaces for listing, trading, and clearing an array of derivatives and securities contracts across various asset classes, including energy and agricultural commodities, interest rates, equities, equity and credit derivatives, exchange traded funds, bonds, and currencies. It also offers end-to-end data services and solutions to support the trading, investment, risk management, and connectivity needs of customers across major asset classes. The company operates exchanges and marketplaces, such as ICE Futures Europe, ICE Futures U.S., ICE Futures Canada, ICE Endex, ICE Futures Singapore, NYSE America Options, and NYSE Arca Options, as well as over-the-counter markets for physical energy and credit default swaps, and central counterparty clearing houses. Intercontinental Exchange, Inc. was founded in 2000 and is headquartered in Atlanta, Georgia.

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