Core Viewpoint - Investors in the Securities and Exchanges sector may find London Stock Exchange Group plc - Unsponsored ADR (LSEGY) more attractive than CME Group (CME) based on various valuation metrics and earnings outlook [1] Valuation Metrics - LSEGY has a forward P/E ratio of 21.99, while CME has a forward P/E of 23.90, indicating LSEGY may be undervalued compared to CME [5] - The PEG ratio for LSEGY is 1.89, significantly lower than CME's PEG ratio of 3.97, suggesting LSEGY offers better value when considering expected earnings growth [5] - LSEGY's P/B ratio is 2.05, compared to CME's P/B of 3.4, further supporting the notion that LSEGY is more attractively priced relative to its book value [6] Earnings Outlook - LSEGY currently holds a Zacks Rank of 2 (Buy), indicating an improving earnings outlook, while CME has a Zacks Rank of 3 (Hold), suggesting a less favorable earnings revision trend [3][7] - The positive earnings estimate revisions for LSEGY enhance its attractiveness to value investors [3][7] Value Grades - LSEGY has a Value grade of B, while CME has a Value grade of D, reflecting LSEGY's stronger position in terms of valuation metrics [6]
LSEGY vs. CME: Which Stock Is the Better Value Option?