CME Group vs Nasdaq
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KIRA’s take AI analyst
I put CME Group and Nasdaq side by side, using each one’s latest annual report. Here is what stands out:
- Nasdaq is the larger business, with $8.3B of revenue in fiscal 2025 against $6.5B for CME Group.
- Nasdaq grew revenue faster (11.7%, against 6.4%).
- CME Group kept more of each dollar of sales as operating profit (64.9% operating margin, against 28.2%).
- CME Group turned more of its sales into free cash flow (64.3% FCF margin, against 24.1%).
- CME Group earned a higher return on the capital invested in it (11.9%, against 9.5%).
- Investors pay more for each dollar of Nasdaq’s earnings: a P/E of 28.6x against 25.3x for CME Group.
Who comes out ahead
Of the 10 measures where higher (or lower) is clearly better, how many each company leads.
CME Group
CME
5/10
Operating marginNet marginFCF marginReturn on capitalNet debt / EBITDA
Nasdaq
NDAQ
5/10
Revenue growth5-year growthReturn on equityPiotroski F-scoreShare count change
Side by side
Best in the row
| Latest fiscal year | CME FY25 | NDAQ FY25 |
|---|---|---|
| Size | ||
| Market cap | $110.5B | $59.0B |
| Revenue | $6.5B | $8.3B |
| Free cash flow | $4.2B | $2.0B |
| Net income | $4.1B | $1.8B |
| Growth | ||
| Revenue growth | 6.4% | 11.7% |
| 5-year growth | 6.0% | 8.0% |
| Share count change | 0.1% | −0.1% |
| Profitability | ||
| Gross margin | — | 63.5% |
| Operating margin | 64.9% | 28.2% |
| Net margin | 62.5% | 21.6% |
| FCF margin | 64.3% | 24.1% |
| Return on capital | 11.9% | 9.5% |
| Return on equity | 14.8% | 15.3% |
| Balance sheet | ||
| Net debt | −$1.1B | $8.4B |
| Net debt / EBITDA | −0.3x | 3.4x |
| Dividends and buybacks | $3.9B | $1.2B |
| Valuation & quality | ||
| P/E | 25.3x | 28.6x |
| Piotroski F-score | 7 | 9 |
Ten years
Revenue
Operating margin
Free cash flow
Return on capital
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.