With MCO Down 5.8% in a Day, Is It Time to Compare It Against CME?
CME (CME) offers superior revenue growth across key periods, better profitability, and relatively lower valuation vs Moodys (MCO), suggesting you may be better off investing in CME
- CME’s quarterly revenue growth was 10.4%, vs. MCO’s 4.5%.
- In addition, its Last 3-Year Average revenue growth came in at 10.0%, ahead of MCO’s 7.6%.
- CME leads on profitability over both periods – LTM margin of 65.3% and 3-year average of 62.8%.
MCO operates globally in risk assessment, offering credit ratings, debt evaluations, and risk management products supporting institutional financial market participants. CME operates global futures and options markets, providing clearing, settlement, and guarantee services for various contracts to traders, institutions, investors, corporations, and governments.
Valuation & Performance Overview
| MCO | CME | Preferred | |
|---|---|---|---|
| Valuation | |||
| P/EBIT Ratio | 27.9 | 22.3 | CME |
| Revenue Growth | |||
| Last Quarter | 4.5% | 10.4% | CME |
| Last 12 Months | 11.5% | 11.2% | MCO |
| Last 3 Year Average | 7.6% | 10.0% | CME |
| Operating Margins | |||
| Last 12 Months | 42.5% | 65.3% | CME |
| Last 3 Year Average | 39.5% | 62.8% | CME |
| Momentum | |||
| Last 3 Year Return | 77.0% | 56.4% | MCO |
Note: For “Last 3 Year Return” metric, preferred stock is one with higher returns unless the returns are too high (>300%) which creates risk of sell off.
See more revenue details: MCO Revenue Comparison | CME Revenue Comparison
See more margin details: MCO Operating Income Comparison | CME Operating Income Comparison
But do these numbers tell the full story? Read Buy or Sell CME Stock to see if CME’s edge holds up under the hood or if Moodys still has cards to play (see Buy or Sell MCO Stock).
That is one way to look at stocks. Trefis High Quality Portfolio evaluates much more, and is designed to reduce stock-specific risk while giving upside exposure
Historical Market Performance
| 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Total [1] | Avg | Best | |
|---|---|---|---|---|---|---|---|---|---|
| Returns | |||||||||
| MCO Return | 23% | 36% | -28% | 42% | 22% | 2% | 127% | <=== | |
| CME Return | -6% | 29% | -23% | 31% | 15% | 14% | 62% | ||
| S&P 500 Return | 16% | 27% | -19% | 24% | 23% | 13% | 104% | ||
| Monthly Win Rates [3] | |||||||||
| MCO Win Rate | 67% | 67% | 33% | 67% | 58% | 62% | 59% | ||
| CME Win Rate | 58% | 42% | 42% | 67% | 50% | 75% | 56% | ||
| S&P 500 Win Rate | 58% | 75% | 42% | 67% | 75% | 62% | 63% | <=== | |
| Max Drawdowns [4] | |||||||||
| MCO Max Drawdown | -30% | -9% | -39% | -1% | -6% | -16% | -17% | ||
| CME Max Drawdown | -30% | -2% | -25% | 0% | -7% | -3% | -11% | <=== | |
| S&P 500 Max Drawdown | -31% | -1% | -25% | -1% | -2% | -15% | -12% | ||
[1] Cumulative total returns since the beginning of 2020
[2] 2025 data is for the year up to 9/18/2025 (YTD)
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
No matter how good the numbers, stock investment is never a smooth ride. There is a risk you must factor in. Read CME Dip Buyer Analyses and MCO Dip Buyer Analyses to see how these stocks have fallen and recovered in the past.