CME Group (CME): Futures Exchange Company from Chicago, IL
Beta: 0.82, this beta is fairly low for a company in the financial sector, being 18% less volatile than the stock market. However, when compared to similar companies such as Intercontinental Exchange (ICE), this beta isn’t abnormal.
P/E: 27.52, this is a high P/E ratio for a financial company. Competitors such as Goldman Sachs (GS) and ICE have P/E ratios of 15.80 and 23.31 respectively.
D/E: 0.11, the debt-to-equity ratio of CME is very low for a stock in the financial sector. Even when compared to similar companies, it is rare to find companies with a D/E of less than 0.40.
EV-EBITDA: 15.10, this value is slightly better than what the competition has to offer, and is below the Investments & Asset Management average value of 18.35 (This average value is from January 2016.)
MetLife (MET): Life Insurance Company from New York, NY
Beta: 1.83, this means that MET 83% more volatile than the stock market. This is about 20% higher than its competitors such as Prudential (PRU) and the American International Group (AIG).
P/E: 11.75, this is a low P/E ratio for a company in the financial sector. Although, this ratio is pretty normal for MET and it’s competition.
D/E: 0.83, this number is on the higher side for the average D/E ratio of life insurance companies. Competitors such as PRU and AIG have D/E ratios that are less than 0.40.
EV-EBITDA: 5.72, this is a good ratio for a life insurance company since the market average for 2015 was 14.7 and as of January 2016, the average value for a life insurance company was 8.38.
Prudential (PRU): Life Insurance Company from Newark, NJ
Beta: 1.68, this means that PRU is 68% more volatile than the stock market. This is about 10% higher than its competitors.
P/E: 8.03, this is a low P/E for a company in the financial sector. The earnings per share are at 10.05 which is comparable to Goldman Sachs (GS) which trades at $90 higher per share. For every dollar that PRU earns, investors will pay $8 for it.
D/E: 0.39, this an average D/E ratio for a life insurance company. Many similar companies have D/E’s in the 0.20-0.50 range.
EV-EBITDA: 4.30, just like with MetLife, this is a great ratio for a life insurance company since the market average for 2015 was 14.7 and as of January 2016, the average value for a life insurance company was 8.38.
This data is current as of 9/23/2016