Critical Comparison: Cboe Global Markets (NASDAQ:CBOE) versus Global Brokerage (OTCMKTS:GLBR)

Global Brokerage (OTCMKTS:GLBR) and Cboe Global Markets (NASDAQ:CBOE) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, profitability, earnings, dividends, valuation, analyst recommendations and institutional ownership.

Risk & Volatility

Global Brokerage has a beta of -1.31, suggesting that its share price is 231% less volatile than the S&P 500. Comparatively, Cboe Global Markets has a beta of 0.66, suggesting that its share price is 34% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Global Brokerage and Cboe Global Markets, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Global Brokerage	0	0	0	0	0.00
Cboe Global Markets	0	1	0	0	2.00

Cboe Global Markets has a consensus target price of $220.00, indicating a potential upside of 9.46%. Given Cboe Global Markets’ stronger consensus rating and higher possible upside, analysts clearly believe Cboe Global Markets is more favorable than Global Brokerage.

Valuation and Earnings

This table compares Global Brokerage and Cboe Global Markets”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Global Brokerage	N/A	N/A	N/A	N/A	N/A
Cboe Global Markets	$3.77 billion	5.58	$761.40 million	$7.34	27.38

Cboe Global Markets has higher revenue and earnings than Global Brokerage.

Profitability

This table compares Global Brokerage and Cboe Global Markets’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Global Brokerage	N/A	N/A	N/A
Cboe Global Markets	19.65%	22.33%	10.79%

Institutional and Insider Ownership

82.7% of Cboe Global Markets shares are owned by institutional investors. 9.0% of Global Brokerage shares are owned by insiders. Comparatively, 0.2% of Cboe Global Markets shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Cboe Global Markets beats Global Brokerage on 8 of the 9 factors compared between the two stocks.

About Global Brokerage

Global Brokerage, Inc., through its subsidiaries, provides online foreign exchange (FX) trading, contracts for difference trading, spread betting, and related services to retail and institutional customers worldwide. Its proprietary trading platform presents its FX customers with the price quotations on various currency pairs from a range of global banks, financial institutions, and market makers. The company also acts as a credit intermediary and simultaneously entering into trades with the customer and the FX market maker. It offers its customers access to over-the-counter FX markets. The company was formerly known as FXCM Inc. and changed its name to Global Brokerage, Inc. in February 2017. Global Brokerage, Inc. was incorporated in 2010 and is based in New York, New York. On March 23, 2023, an involuntary petition for liquidation under Chapter 7 was filed against Global Brokerage, Inc. in the U.S. Bankruptcy Court for the Southern District of New York. On May 19, 2023, the involuntary petition was approved by the Court.

About Cboe Global Markets

Cboe Global Markets, Inc. is one of the largest stock exchange operators by volume in the United States and a leading market globally for ETP trading. Cboe offers trading across a diverse range of products in multiple asset classes and geographies, including options, futures, U.S. and European equities, exchange-traded products (ETPs), global foreign exchange (FX) and multi-asset volatility products based on the VIX Index. Cboe’s trading venues include the largest options exchange in the United States and the largest stock exchange by value traded in Europe. CBOE reports the results of its operations in 5 business segments: Options, Futures, U.S. Equities, European Equities, and Global FX.