Critical Contrast: Deutsche Boerse (OTCMKTS:DBOEY) & London Stock Exchange Group (OTCMKTS:LNSTY)

Deutsche Boerse (OTCMKTS:DBOEY) and London Stock Exchange Group (OTCMKTS:LNSTY) are both large-cap finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, institutional ownership, profitability, risk, valuation and earnings.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Deutsche Boerse and London Stock Exchange Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Deutsche Boerse	0	3	1	0	2.25
London Stock Exchange Group	0	1	0	1	3.00

Profitability

This table compares Deutsche Boerse and London Stock Exchange Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Deutsche Boerse	28.89%	19.29%	0.84%
London Stock Exchange Group	N/A	N/A	N/A

Dividends

Deutsche Boerse pays an annual dividend of $0.26 per share and has a dividend yield of 0.8%. London Stock Exchange Group pays an annual dividend of $0.48 per share and has a dividend yield of 1.3%. Deutsche Boerse pays out 22.6% of its earnings in the form of a dividend.

Valuation & Earnings

This table compares Deutsche Boerse and London Stock Exchange Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Deutsche Boerse	$7.63 billion	7.55	$2.11 billion	$1.15	26.60
London Stock Exchange Group	$10.96 billion	7.04	$875.36 million	N/A	N/A

Deutsche Boerse has higher earnings, but lower revenue than London Stock Exchange Group.

Summary

Deutsche Boerse beats London Stock Exchange Group on 6 of the 11 factors compared between the two stocks.

About Deutsche Boerse

Deutsche Börse AG operates as an exchange organization in Europe, America, and the Asia-Pacific. The company operates through four segments: Data & Analytics; Trading & Clearing; Fund Services; and Securities Services. It engages in the trading of derivatives, electricity and gas products, emission rights, foreign exchange, and commodity products; operating EEX and 360T over the counter trading platform for financial instruments, such as foreign exchange, money market, and interest rate products; and operating as a central counterparty. The company also operates in the cash market through Xetra, Börse Frankfurt, and Tradegate trading venues; Qontigo, an integrated suite of front-to-back investment management solution; and a central counterparty for equities and bonds, as well as provides pre-ipo and listing services. In addition, it offers custody and settlement services for securities; investment fund services; connectivity services; and global securities funding and financing, and collateral and liquidity management, as well as secured money, market transaction, and repos and securities lending transaction services. Further, the company provides order routing, settlement, asset management, and custody; investment distribution and placement; infrastructure and post-trading; index, analytics, and risk; securities transactions settlement; securities custody and administration; and market data and analytics services. Additionally, it operates third clearing house Nodal Clear; and specialized software as a service platform for trading participants and digital business platform, as well as offers information technology solutions, including financial market, commodities market, and network connectivity solutions under the Deutsche Börse and 7 Market Technology brands. The company was founded in 1585 and is headquartered in Eschborn, Germany.

About London Stock Exchange Group

London Stock Exchange Group plc operates as a financial markets infrastructure and data provider primarily in the United Kingdom and internationally. The company operates in three segments: Data & Analytics, Capital Markets, and Post Trade. It operates a range of international equity, fixed income, exchange-traded funds/exchange-traded products, and foreign exchange markets through the London Stock Exchange, AIM, Turquoise, FXall, Matching, and Tradeweb. The company also provides information and data products, such as indexes, benchmarks, real time pricing data and trade reporting, and reconciliation services, as well as network connection and services; market trading services; and clearing, risk management, capital optimization, and regulatory reporting solutions. In addition, it licenses capital markets; installs software; and provides maintenance, and events and media services. The company was founded in 1698 and is headquartered in London, the United Kingdom.