Contrasting Global Brokerage (OTCMKTS:GLBR) & Cboe Global Markets (NASDAQ:CBOE)

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

Risk & Volatility

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

Profitability

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

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

Institutional and Insider Ownership

82.7% of Cboe Global Markets shares are owned by institutional investors. 0.2% of Cboe Global Markets shares are owned by insiders. Comparatively, 9.0% of Global Brokerage shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Recommendations

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

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

Cboe Global Markets presently has a consensus price target of $220.00, indicating a potential upside of 13.52%. Given Cboe Global Markets’ stronger consensus rating and higher possible upside, equities research analysts plainly believe Cboe Global Markets is more favorable than Global Brokerage.

Earnings & Valuation

This table compares Cboe Global Markets and Global Brokerage”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cboe Global Markets	$3.77 billion	5.38	$761.40 million	$7.34	26.40
Global Brokerage	N/A	N/A	N/A	N/A	N/A

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

Summary

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

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.

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.