MarketAxess (MKTX) vs. Its Competitors Head to Head Comparison

MarketAxess (NASDAQ: MKTX) is one of 31 public companies in the “Security brokers & dealers” industry, but how does it contrast to its peers? We will compare MarketAxess to similar companies based on the strength of its valuation, earnings, analyst recommendations, risk, profitability, institutional ownership and dividends.

Volatility & Risk

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MarketAxess has a beta of 0.57, meaning that its stock price is 43% less volatile than the S&P 500. Comparatively, MarketAxess’ peers have a beta of 8.84, meaning that their average stock price is 784% more volatile than the S&P 500.

Insider & Institutional Ownership

99.8% of MarketAxess shares are held by institutional investors. Comparatively, 66.3% of shares of all “Security brokers & dealers” companies are held by institutional investors. 4.0% of MarketAxess shares are held by insiders. Comparatively, 21.5% of shares of all “Security brokers & dealers” companies are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings for MarketAxess and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
MarketAxess 0 4 1 0 2.20
MarketAxess Competitors 318 1364 1433 67 2.39

MarketAxess presently has a consensus target price of $209.80, indicating a potential downside of 0.12%. As a group, “Security brokers & dealers” companies have a potential downside of 0.15%. Given MarketAxess’ higher possible upside, equities analysts plainly believe MarketAxess is more favorable than its peers.

Profitability

This table compares MarketAxess and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
MarketAxess 37.26% 29.54% 26.72%
MarketAxess Competitors 5.55% 3.62% 5.12%

Earnings & Valuation

This table compares MarketAxess and its peers revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
MarketAxess $397.47 million $148.08 million 53.86
MarketAxess Competitors $5.87 billion $745.79 million 24.25

MarketAxess’ peers have higher revenue and earnings than MarketAxess. MarketAxess is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Dividends

MarketAxess pays an annual dividend of $1.68 per share and has a dividend yield of 0.8%. MarketAxess pays out 43.1% of its earnings in the form of a dividend. As a group, “Security brokers & dealers” companies pay a dividend yield of 1.6% and pay out 35.0% of their earnings in the form of a dividend. MarketAxess lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Summary

MarketAxess peers beat MarketAxess on 9 of the 15 factors compared.

About MarketAxess

MarketAxess Holdings Inc. operates an electronic trading platform that enables fixed-income market participants to trade corporate bonds and other types of fixed-income instruments using its trading technology. Institutional investor and broker-dealer firms are users of trading platform, accessing global liquidity in the United States corporate bonds, emerging markets and high-yield bonds, European bonds, the United States agency bonds, municipal bonds, credit default swaps and other fixed-income securities. Through Open Trading protocols, it executes trades in certain bonds between and among institutional investor and broker-dealer clients in a trading environment on a matched principal basis. It offers trading-related products and services, including market data to assist clients with trading decisions; connectivity solutions that facilitate straight-through processing; technology services to optimize trading environments, and execution services for exchange-traded fund managers.

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