AXP vs. CME: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at AXP and CME, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
AXP’s market capitalization of 229.88 billion USD is substantially larger than CME’s 99.71 billion USD, indicating a significant difference in their market valuations.
AXP’s beta of 1.25 points to significantly higher volatility compared to CME (beta: 0.48), suggesting AXP has greater potential for both gains and losses relative to market movements.
| Symbol | AXP | CME |
|---|---|---|
| Company Name | American Express Company | CME Group Inc. |
| Country | US | US |
| Sector | Financial Services | Financial Services |
| Industry | Financial - Credit Services | Financial - Data & Stock Exchanges |
| CEO | Stephen Joseph Squeri | Terrence A. Duffy |
| Price | 328.13 USD | 276.7 USD |
| Market Cap | 229.88 billion USD | 99.71 billion USD |
| Beta | 1.25 | 0.48 |
| Exchange | NYSE | NASDAQ |
| IPO Date | June 1, 1972 | December 6, 2002 |
| ADR | No | No |
Historical Performance
This chart compares the performance of AXP 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.
Profitability
Return on Equity
AXP
34.05%
Financial - Credit Services Industry
- Max
- 34.05%
- Q3
- 18.70%
- Median
- 10.57%
- Q1
- 3.55%
- Min
- -12.12%
In the upper quartile for the Financial - Credit Services industry, AXP’s Return on Equity of 34.05% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
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.
Return on Invested Capital
AXP
8.40%
Financial - Credit Services Industry
- Max
- 68.11%
- Q3
- 32.26%
- Median
- 9.52%
- Q1
- 3.37%
- Min
- -7.03%
Return on Invested Capital is often not a primary measure of capital efficiency in the Financial - Credit Services industry.
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.
Net Profit Margin
AXP
13.64%
Financial - Credit Services Industry
- Max
- 39.42%
- Q3
- 20.10%
- Median
- 12.91%
- Q1
- 5.82%
- Min
- -14.80%
AXP’s Net Profit Margin of 13.64% is aligned with the median group of its peers in the Financial - Credit Services 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.
Operating Profit Margin
AXP
17.36%
Financial - Credit Services Industry
- Max
- 77.26%
- Q3
- 42.86%
- Median
- 17.99%
- Q1
- 10.82%
- Min
- -14.94%
AXP’s Operating Profit Margin of 17.36% is around the midpoint for the Financial - Credit Services industry, indicating that its efficiency in managing core business operations is typical for the sector.
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.
Profitability at a Glance
| Symbol | AXP | CME |
|---|---|---|
| Return on Equity (TTM) | 34.05% | 13.26% |
| Return on Assets (TTM) | 3.64% | 2.30% |
| Return on Invested Capital (TTM) | 8.40% | 8.70% |
| Net Profit Margin (TTM) | 13.64% | 57.71% |
| Operating Profit Margin (TTM) | 17.36% | 64.92% |
| Gross Profit Margin (TTM) | 82.37% | 86.46% |
Financial Strength
Current Ratio
AXP
0.32
Financial - Credit Services Industry
- Max
- 8.15
- Q3
- 4.39
- Median
- 2.62
- Q1
- 1.06
- Min
- 0.15
For the Financial - Credit Services industry, the Current Ratio is often not the most suitable measure of short-term liquidity.
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.
Debt-to-Equity Ratio
AXP
1.69
Financial - Credit Services Industry
- Max
- 4.69
- Q3
- 2.55
- Median
- 1.20
- Q1
- 0.55
- Min
- 0.00
AXP’s Debt-to-Equity Ratio of 1.69 is typical for the Financial - Credit Services 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.
Interest Coverage Ratio
AXP
1.59
Financial - Credit Services Industry
- Max
- 17.48
- Q3
- 7.42
- Median
- 1.59
- Q1
- 0.38
- Min
- -7.77
The Interest Coverage Ratio is often not a primary indicator of debt servicing capacity in the Financial - Credit Services industry.
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.
Financial Strength at a Glance
| Symbol | AXP | CME |
|---|---|---|
| Current Ratio (TTM) | 0.32 | 1.02 |
| Quick Ratio (TTM) | 0.32 | 1.02 |
| Debt-to-Equity Ratio (TTM) | 1.69 | 0.13 |
| Debt-to-Asset Ratio (TTM) | 0.19 | 0.02 |
| Net Debt-to-EBITDA Ratio (TTM) | 0.03 | 0.40 |
| Interest Coverage Ratio (TTM) | 1.59 | 25.08 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for AXP and CME. These metrics are based on the companies’ annual financial reports.
Revenue Growth
Earnings Per Share (EPS) Growth
Free Cash Flow Growth
Dividend
Dividend Yield
AXP
0.93%
Financial - Credit Services Industry
- Max
- 14.68%
- Q3
- 2.97%
- Median
- 1.03%
- Q1
- 0.00%
- Min
- 0.00%
AXP’s Dividend Yield of 0.93% is consistent with its peers in the Financial - Credit Services industry, providing a dividend return that is standard for its sector.
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.
Dividend Payout Ratio
AXP
20.01%
Financial - Credit Services Industry
- Max
- 169.58%
- Q3
- 38.15%
- Median
- 18.30%
- Q1
- 0.00%
- Min
- 0.00%
AXP’s Dividend Payout Ratio of 20.01% is within the typical range for the Financial - Credit Services industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
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.
Dividend at a Glance
| Symbol | AXP | CME |
|---|---|---|
| Dividend Yield (TTM) | 0.93% | 3.83% |
| Dividend Payout Ratio (TTM) | 20.01% | 105.42% |
Valuation
Price-to-Earnings Ratio
AXP
22.38
Financial - Credit Services Industry
- Max
- 42.04
- Q3
- 25.88
- Median
- 12.28
- Q1
- 9.55
- Min
- 3.09
AXP’s P/E Ratio of 22.38 is within the middle range for the Financial - Credit Services 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.
Forward P/E to Growth Ratio
AXP
2.10
Financial - Credit Services Industry
- Max
- 2.76
- Q3
- 1.57
- Median
- 0.82
- Q1
- 0.51
- Min
- 0.06
A Forward PEG Ratio of 2.10 places AXP in the upper quartile for the Financial - Credit Services industry. This suggests the stock is potentially expensive compared to its peers relative to its growth forecast, which may warrant caution.
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.
Price-to-Sales Ratio
AXP
3.05
Financial - Credit Services Industry
- Max
- 6.24
- Q3
- 3.02
- Median
- 1.54
- Q1
- 0.75
- Min
- 0.32
The P/S Ratio is often not a primary valuation tool in the Financial - Credit Services industry.
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.
Price-to-Book Ratio
AXP
7.37
Financial - Credit Services Industry
- Max
- 3.58
- Q3
- 2.84
- Median
- 1.28
- Q1
- 0.84
- Min
- 0.07
At 7.37, AXP’s P/B Ratio is at an extreme premium to the Financial - Credit Services industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.
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.
Valuation at a Glance
| Symbol | AXP | CME |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 22.38 | 27.44 |
| Forward PEG Ratio (TTM) | 2.10 | 4.25 |
| Price-to-Sales Ratio (P/S, TTM) | 3.05 | 15.87 |
| Price-to-Book Ratio (P/B, TTM) | 7.37 | 3.68 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 20.31 | 26.06 |
| EV-to-EBITDA (TTM) | 15.56 | 20.45 |
| EV-to-Sales (TTM) | 3.06 | 16.19 |