Better Buy: CME Group vs. Nasdaq
The year 2020 has been a mixed bag for the exchanges. The stock market exchanges of NASDAQ (NASDAQ: NDAQ) and Intercontinental Exchange have outperformed, while the derivatives exchanges like CME Group (NASDAQ: CME) and CBOE Global Markets have struggled. Has CME Group fallen enough relative to NASDAQ that it would be a buy?
CME Group focuses primarily on trading derivatives, mainly futures and options. It began as the Chicago Mercantile Exchange, bought the Chicago Board of Trade, and now owns the Commodity Exchange and the New York Mercantile Exchange. The group's biggest contracts are interest rate derivatives and energy. NASDAQ focuses primarily on cash equity trading and options. The company earns fees from per-ticket charges and clearing fees on trades, and also from selling its data. NASDAQ also sells proprietary software and performs outsourced corporate services like investor relations and corporate governance consulting.
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Source Fool.com
