Head to Head Contrast: Deutsche Börse (DBOEY) vs. Intercontinental Exchange (NYSE:ICE)

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

Dividends

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Intercontinental Exchange pays an annual dividend of $0.96 per share and has a dividend yield of 1.3%. Deutsche Börse pays an annual dividend of $0.17 per share and has a dividend yield of 1.2%. Intercontinental Exchange pays out 32.5% of its earnings in the form of a dividend. Intercontinental Exchange has raised 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 Intercontinental Exchange and Deutsche Börse’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Intercontinental Exchange $5.83 billion 7.42 $2.51 billion $2.95 25.21
Deutsche Börse $3.17 billion 8.32 $988.22 million N/A N/A

Intercontinental Exchange has higher revenue and earnings than Deutsche Börse.

Analyst Recommendations

This is a summary of recent ratings and target prices for Intercontinental Exchange and Deutsche Börse, as reported by MarketBeat.

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

Intercontinental Exchange currently has a consensus price target of $78.31, indicating a potential upside of 5.29%. Given Intercontinental Exchange’s stronger consensus rating and higher possible upside, research analysts clearly believe Intercontinental Exchange is more favorable than Deutsche Börse.

Risk and Volatility

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

Profitability

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

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

Institutional & Insider Ownership

90.7% of Intercontinental Exchange shares are owned by institutional investors. Comparatively, 0.1% of Deutsche Börse shares are owned by institutional investors. 1.5% of Intercontinental Exchange shares are owned by 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.

Summary

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

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.

About Deutsche Börse

Deutsche Börse Aktiengesellschaft operates as an exchange organization in Europe, America, and the Asia-Pacific. 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 and electronic clearing architecture; and as a central counterparty for on-and-off exchange derivatives and repo transactions. The Xetra segment operates in the cash market through Xetra, Börse Frankfurt, and Tradegate trading venues; operates as a central counterparty for equities and bonds; and provides admission of securities to listing services. The Clearstream segment offers custody and settlement services for securities; global securities financing services and collateral management; and investment funds services. The Market Data + Services segment distributes licenses for trading and market signals; develops and sells indices; provides technology and reporting solutions for external customers; and trades in participant connectivity. Deutsche Börse Aktiengesellschaft is headquartered in Frankfurt, Germany.

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