Seek Returns logo

AMP vs. CME: A Head-to-Head Stock Comparison

Updated on

Here’s a clear look at AMP and CME, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Overview

CME’s market capitalization of 99.71 billion USD is significantly greater than AMP’s 51.73 billion USD, highlighting its more substantial market valuation.

AMP’s beta of 1.23 points to significantly higher volatility compared to CME (beta: 0.48), suggesting AMP has greater potential for both gains and losses relative to market movements.

SymbolAMPCME
Company NameAmeriprise Financial, Inc.CME Group Inc.
CountryUSUS
SectorFinancial ServicesFinancial Services
IndustryAsset ManagementFinancial - Data & Stock Exchanges
CEOJames M. Cracchiolo CPATerrence A. Duffy
Price543.3 USD276.7 USD
Market Cap51.73 billion USD99.71 billion USD
Beta1.230.48
ExchangeNYSENASDAQ
IPO DateSeptember 15, 2005December 6, 2002
ADRNoNo

Historical Performance

This chart compares the performance of AMP and CME by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period.

Data is adjusted for dividends and splits.

AMP vs. CME: Growth of a $10,000 investment over the past one year.

Profitability

Return on Equity

AMP

56.06%

Asset Management Industry

Max
34.25%
Q3
18.22%
Median
11.24%
Q1
5.81%
Min
-5.72%

AMP’s Return on Equity of 56.06% is exceptionally high, placing it well beyond the typical range for the Asset Management industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.

CME

13.26%

Financial - Data & Stock Exchanges Industry

Max
26.26%
Q3
23.14%
Median
14.33%
Q1
11.12%
Min
-0.64%

CME’s Return on Equity of 13.26% is on par with the norm for the Financial - Data & Stock Exchanges industry, indicating its profitability relative to shareholder equity is typical for the sector.

AMP vs. CME: A comparison of their ROE against their respective Asset Management and Financial - Data & Stock Exchanges industry benchmarks.

Return on Invested Capital

AMP

38.36%

Asset Management Industry

Max
42.18%
Q3
20.06%
Median
8.68%
Q1
3.13%
Min
-16.42%

In the upper quartile for the Asset Management industry, AMP’s Return on Invested Capital of 38.36% signifies a highly effective use of its capital to generate profits when compared to its peers.

CME

8.70%

Financial - Data & Stock Exchanges Industry

Max
18.31%
Q3
14.86%
Median
11.07%
Q1
6.75%
Min
4.04%

CME’s Return on Invested Capital of 8.70% is in line with the norm for the Financial - Data & Stock Exchanges industry, reflecting a standard level of efficiency in generating profits from its capital base.

AMP vs. CME: A comparison of their ROIC against their respective Asset Management and Financial - Data & Stock Exchanges industry benchmarks.

Net Profit Margin

AMP

17.14%

Asset Management Industry

Max
91.66%
Q3
57.81%
Median
29.48%
Q1
15.70%
Min
-27.65%

AMP’s Net Profit Margin of 17.14% is aligned with the median group of its peers in the Asset Management industry. This indicates its ability to convert revenue into profit is typical for the sector.

CME

57.71%

Financial - Data & Stock Exchanges Industry

Max
39.08%
Q3
31.63%
Median
23.20%
Q1
18.09%
Min
-0.88%

CME’s Net Profit Margin of 57.71% is exceptionally high, placing it well beyond the typical range for the Financial - Data & Stock Exchanges industry. This demonstrates outstanding operational efficiency and a strong competitive advantage in converting revenue into profit.

AMP vs. CME: A comparison of their Net Profit Margin against their respective Asset Management and Financial - Data & Stock Exchanges industry benchmarks.

Operating Profit Margin

AMP

21.38%

Asset Management Industry

Max
99.76%
Q3
78.28%
Median
34.76%
Q1
21.75%
Min
-48.25%

AMP’s Operating Profit Margin of 21.38% is in the lower quartile for the Asset Management industry. This indicates weaker profitability from core operations, which may stem from inefficiencies or competitive pressures on pricing.

CME

64.92%

Financial - Data & Stock Exchanges Industry

Max
53.68%
Q3
40.45%
Median
31.81%
Q1
24.66%
Min
9.71%

CME’s Operating Profit Margin of 64.92% is exceptionally high, placing it well above the typical range for the Financial - Data & Stock Exchanges industry. This demonstrates outstanding efficiency in managing its core operations, which can be a result of strong pricing power or superior cost control.

AMP vs. CME: A comparison of their Operating Margin against their respective Asset Management and Financial - Data & Stock Exchanges industry benchmarks.

Profitability at a Glance

SymbolAMPCME
Return on Equity (TTM)56.06%13.26%
Return on Assets (TTM)1.67%2.30%
Return on Invested Capital (TTM)38.36%8.70%
Net Profit Margin (TTM)17.14%57.71%
Operating Profit Margin (TTM)21.38%64.92%
Gross Profit Margin (TTM)100.00%86.46%

Financial Strength

Current Ratio

AMP

38.84

Asset Management Industry

Max
12.44
Q3
5.76
Median
3.04
Q1
1.03
Min
0.01

AMP’s Current Ratio of 38.84 is exceptionally high, placing it well outside the typical range for the Asset Management industry. This indicates a very strong liquidity position, though such a high ratio may also suggest that the company is not using its assets efficiently to generate profits.

CME

1.02

Financial - Data & Stock Exchanges Industry

Max
1.60
Q3
1.57
Median
1.06
Q1
0.96
Min
0.62

CME’s Current Ratio of 1.02 aligns with the median group of the Financial - Data & Stock Exchanges industry, indicating that its short-term liquidity is in line with its sector peers.

AMP vs. CME: A comparison of their Current Ratio against their respective Asset Management and Financial - Data & Stock Exchanges industry benchmarks.

Debt-to-Equity Ratio

AMP

0.70

Asset Management Industry

Max
2.62
Q3
1.42
Median
0.76
Q1
0.34
Min
0.01

AMP’s Debt-to-Equity Ratio of 0.70 is typical for the Asset Management industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

CME

0.13

Financial - Data & Stock Exchanges Industry

Max
1.09
Q3
0.80
Median
0.62
Q1
0.36
Min
0.04

Falling into the lower quartile for the Financial - Data & Stock Exchanges industry, CME’s Debt-to-Equity Ratio of 0.13 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.

AMP vs. CME: A comparison of their D/E Ratio against their respective Asset Management and Financial - Data & Stock Exchanges industry benchmarks.

Interest Coverage Ratio

AMP

11.42

Asset Management Industry

Max
13.30
Q3
6.30
Median
2.71
Q1
1.00
Min
-6.91

AMP’s Interest Coverage Ratio of 11.42 is in the upper quartile for the Asset Management industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.

CME

25.08

Financial - Data & Stock Exchanges Industry

Max
27.44
Q3
22.05
Median
10.08
Q1
6.79
Min
1.01

CME’s Interest Coverage Ratio of 25.08 is in the upper quartile for the Financial - Data & Stock Exchanges industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.

AMP vs. CME: A comparison of their Interest Coverage against their respective Asset Management and Financial - Data & Stock Exchanges industry benchmarks.

Financial Strength at a Glance

SymbolAMPCME
Current Ratio (TTM)38.841.02
Quick Ratio (TTM)38.841.02
Debt-to-Equity Ratio (TTM)0.700.13
Debt-to-Asset Ratio (TTM)0.020.02
Net Debt-to-EBITDA Ratio (TTM)1.030.40
Interest Coverage Ratio (TTM)11.4225.08

Growth

The following charts compare key year-over-year (YoY) growth metrics for AMP and CME. These metrics are based on the companies’ annual financial reports.

Revenue Growth

AMP vs. CME: A comparison of their annual year-over-year Revenue Growth.

Earnings Per Share (EPS) Growth

AMP vs. CME: A comparison of their annual year-over-year Earnings Per Share (EPS) Growth.

Free Cash Flow Growth

AMP vs. CME: A comparison of their annual year-over-year Free Cash Flow Growth.

Dividend

Dividend Yield

AMP

1.11%

Asset Management Industry

Max
26.09%
Q3
11.60%
Median
6.37%
Q1
2.75%
Min
0.00%

AMP’s Dividend Yield of 1.11% is in the lower quartile for the Asset Management industry. This suggests the company’s strategy likely favors retaining earnings for growth over providing a high dividend income.

CME

3.83%

Financial - Data & Stock Exchanges Industry

Max
3.86%
Q3
1.44%
Median
1.06%
Q1
0.73%
Min
0.00%

With a Dividend Yield of 3.83%, CME offers a more attractive income stream than most of its peers in the Financial - Data & Stock Exchanges industry, signaling a strong commitment to shareholder returns.

AMP vs. CME: A comparison of their Dividend Yield against their respective Asset Management and Financial - Data & Stock Exchanges industry benchmarks.

Dividend Payout Ratio

AMP

19.37%

Asset Management Industry

Max
1,034.88%
Q3
127.70%
Median
75.15%
Q1
34.21%
Min
0.00%

AMP’s Dividend Payout Ratio of 19.37% is in the lower quartile for the Asset Management industry. This suggests a conservative dividend policy, with a strategic focus on reinvesting profits for future growth.

CME

105.42%

Financial - Data & Stock Exchanges Industry

Max
106.40%
Q3
44.44%
Median
31.97%
Q1
29.26%
Min
0.00%

CME’s Dividend Payout Ratio of 105.42% is above 100%. This means the company is paying out more in dividends than it earned, a practice that is often unsustainable and could indicate a risk to future dividend stability.

AMP vs. CME: A comparison of their Payout Ratio against their respective Asset Management and Financial - Data & Stock Exchanges industry benchmarks.

Dividend at a Glance

SymbolAMPCME
Dividend Yield (TTM)1.11%3.83%
Dividend Payout Ratio (TTM)19.37%105.42%

Valuation

Price-to-Earnings Ratio

AMP

17.87

Asset Management Industry

Max
38.72
Q3
23.40
Median
11.45
Q1
8.80
Min
1.54

AMP’s P/E Ratio of 17.87 is within the middle range for the Asset Management industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

CME

27.44

Financial - Data & Stock Exchanges Industry

Max
41.71
Q3
40.17
Median
37.47
Q1
30.61
Min
16.74

In the lower quartile for the Financial - Data & Stock Exchanges industry, CME’s P/E Ratio of 27.44 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.

AMP vs. CME: A comparison of their P/E Ratio against their respective Asset Management and Financial - Data & Stock Exchanges industry benchmarks.

Forward P/E to Growth Ratio

AMP

1.32

Asset Management Industry

Max
6.38
Q3
3.23
Median
1.55
Q1
0.89
Min
0.02

AMP’s Forward PEG Ratio of 1.32 is within the middle range of its peers in the Asset Management industry. This suggests a reasonable balance between the stock’s price and its expected growth, aligning with sector valuation norms.

CME

4.25

Financial - Data & Stock Exchanges Industry

Max
4.54
Q3
4.09
Median
4.06
Q1
3.33
Min
2.36

A Forward PEG Ratio of 4.25 places CME in the upper quartile for the Financial - Data & Stock Exchanges industry. This suggests the stock is potentially expensive compared to its peers relative to its growth forecast, which may warrant caution.

AMP vs. CME: A comparison of their Forward PEG Ratio against their respective Asset Management and Financial - Data & Stock Exchanges industry benchmarks.

Price-to-Sales Ratio

AMP

2.96

Asset Management Industry

Max
13.75
Q3
7.92
Median
4.87
Q1
3.51
Min
0.02

In the lower quartile for the Asset Management industry, AMP’s P/S Ratio of 2.96 indicates its revenue is valued more conservatively than most of its peers. This could present a compelling opportunity if the market has overlooked its sales-generating capabilities.

CME

15.87

Financial - Data & Stock Exchanges Industry

Max
15.75
Q3
12.42
Median
9.37
Q1
6.34
Min
1.69

With a P/S Ratio of 15.87, CME trades at a valuation that eclipses even the highest in the Financial - Data & Stock Exchanges industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.

AMP vs. CME: A comparison of their P/S Ratio against their respective Asset Management and Financial - Data & Stock Exchanges industry benchmarks.

Price-to-Book Ratio

AMP

9.86

Asset Management Industry

Max
5.33
Q3
2.75
Median
1.06
Q1
0.87
Min
0.00

The P/B Ratio is often not a primary valuation metric for the Asset Management industry.

CME

3.68

Financial - Data & Stock Exchanges Industry

Max
8.57
Q3
8.05
Median
4.77
Q1
3.69
Min
1.19

CME’s P/B Ratio of 3.68 is in the lower quartile for the Financial - Data & Stock Exchanges industry. From a value investing perspective, this is favorable, as it suggests the stock is trading at a discount to its net asset value and may offer a greater margin of safety.

AMP vs. CME: A comparison of their P/B Ratio against their respective Asset Management and Financial - Data & Stock Exchanges industry benchmarks.

Valuation at a Glance

SymbolAMPCME
Price-to-Earnings Ratio (P/E, TTM)17.8727.44
Forward PEG Ratio (TTM)1.324.25
Price-to-Sales Ratio (P/S, TTM)2.9615.87
Price-to-Book Ratio (P/B, TTM)9.863.68
Price-to-Free Cash Flow Ratio (P/FCF, TTM)7.7526.06
EV-to-EBITDA (TTM)15.1220.45
EV-to-Sales (TTM)3.1816.19