INTL FCStone (INTL) & Intercontinental Exchange (ICE) Head to Head Analysis

Intercontinental Exchange (NYSE: ICE) and INTL FCStone (NASDAQ:INTL) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, dividends, risk, earnings, analyst recommendations, valuation and profitability.

Institutional & Insider Ownership

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90.7% of Intercontinental Exchange shares are held by institutional investors. Comparatively, 68.1% of INTL FCStone shares are held by institutional investors. 1.5% of Intercontinental Exchange shares are held by company insiders. Comparatively, 20.5% of INTL FCStone shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent recommendations for Intercontinental Exchange and INTL FCStone, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Intercontinental Exchange 0 2 11 0 2.85
INTL FCStone 0 0 0 0 N/A

Intercontinental Exchange currently has a consensus target price of $78.31, indicating a potential upside of 7.01%. Given Intercontinental Exchange’s higher possible upside, equities analysts clearly believe Intercontinental Exchange is more favorable than INTL FCStone.

Dividends

Intercontinental Exchange pays an annual dividend of $0.96 per share and has a dividend yield of 1.3%. INTL FCStone does not pay a dividend. Intercontinental Exchange pays out 32.5% of its earnings in the form of a dividend. Intercontinental Exchange has increased its dividend for 4 consecutive years.

Volatility & Risk

Intercontinental Exchange has a beta of 0.64, meaning that its share price is 36% less volatile than the S&P 500. Comparatively, INTL FCStone has a beta of 1.68, meaning that its share price is 68% more volatile than the S&P 500.

Valuation & Earnings

This table compares Intercontinental Exchange and INTL FCStone’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Intercontinental Exchange $5.83 billion 7.30 $2.51 billion $2.95 24.81
INTL FCStone $29.42 billion 0.03 $6.40 million N/A N/A

Intercontinental Exchange has higher earnings, but lower revenue than INTL FCStone.

Profitability

This table compares Intercontinental Exchange and INTL FCStone’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Intercontinental Exchange 43.09% 10.83% 2.21%
INTL FCStone -0.02% 3.32% 0.23%

Summary

Intercontinental Exchange beats INTL FCStone on 10 of the 15 factors compared between the two stocks.

Intercontinental Exchange Company Profile

Intercontinental Exchange, Inc. operates regulated exchanges, clearing houses, and listings venues for financial and commodity markets in the United States, the United Kingdom, Continental Europe, Asia, Israel, and Canada. It operates through two segments, Trading and Clearing; and Data and Listings. The company operates marketplaces for listing, trading, and clearing an array of derivatives and securities contracts across various asset classes, including energy and agricultural commodities, interest rates, equities, equity and credit derivatives, exchange traded funds, bonds, and currencies. It also offers end-to-end data services and solutions to support the trading, investment, risk management, and connectivity needs of customers across major asset classes. The company operates exchanges and marketplaces, such as ICE Futures Europe, ICE Futures U.S., ICE Futures Canada, ICE Endex, ICE Futures Singapore, NYSE America Options, and NYSE Arca Options, as well as over-the-counter markets for physical energy and credit default swaps, and central counterparty clearing houses. Intercontinental Exchange, Inc. was founded in 2000 and is headquartered in Atlanta, Georgia.

INTL FCStone Company Profile

INTL FCStone Inc. operates as a financial services company worldwide. The company's Commercial Hedging segment offers risk management consulting services related to agricultural and energy commodities, and base metal products listed on the London Metals Exchange. Its Global Payments segment provides payment solutions to banks and commercial businesses; and charities and non-governmental organizations, and government organizations. The company's Securities segment offers value-added solutions that facilitate cross-border trading in foreign securities, including unlisted American Depositary Receipts, Global Depository Receipts, and foreign ordinary shares. This segment also operates as an institutional dealer in fixed income securities to serve asset managers, commercial bank trust and investment departments, broker-dealers, and insurance companies. In addition, it originates, structures, and places debt instruments; trades in various international debt instruments; and offers asset management services. The company's Physical Commodities segment provides a range of trading and hedging services comprising OTC products for selecting producers, consumers, and investors. This segment also offers financing services to commercial commodity-related companies against physical inventories. The company's Clearing and Execution Services segment offers prime brokerage foreign exchange services for the financial institutions and professional traders; provides a range of OTC products, including 24-hour a day execution of spot, forwards, and options, as well as non-deliverable forwards; and operates a proprietary foreign exchange desk that arbitrages the exchange-traded foreign exchange markets with the cash markets. The company was formerly known as International Assets Holding Corporation and changed its name to INTL FCStone Inc. in March 2011. INTL FCStone Inc. was founded in 1924 and is based in New York, New York.

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