CME GroupMarsh McLennan

CME Group vs Marsh McLennan

This page compares CME Group and Marsh McLennan across business models, financial performance, and market context. It presents key factors shaping their activities, governance, and competitive positio...

Why It's Moving

CME Group

CME stock moves as the exchange extends trading hours and sees a surge in energy futures activity.

  • Globex trading window expanded toward near‑continuous 24/7 operation effective December 5, 2025 β€” a structural change that can boost transaction hours, flow and fee revenue by capturing overnight order flow and global participants. [2]
  • Natural‑gas futures rallied more than 8% and reached three‑year highs this week on colder U.S. forecasts and stronger LNG demand, lifting futures volumes and implied volatility across energy contracts that clear on CME and tending to increase exchange trading and clearing revenues when activity spikes.[1]
  • CME announced routine investor items this week including its quarterly dividend declaration and ongoing product/market notices; management is positioning the firm as the hub for extended hours and data/clearing services, implying incremental yield on existing cash flows if execution volumes remain elevated.[5][6]
Sentiment:
πŸƒBullish
Marsh McLennan

Marsh & McLennan holds steady amid falling insurance rates as analysts stick to Hold rating.

  • Global commercial insurance rates fell 4% in Q3 2025, driven by an 11% plunge in Pacific markets, squeezing margins in risk services[8].
  • Analysts issued a consensus Hold rating on December 4, balancing MMC's solid track record against economic uncertainty[6].
  • Recent leadership move with James Addington-Smith appointed Marsh UK CEO on November 18, bolstering regional operations[7].
Sentiment:
βš–οΈNeutral

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Investment Analysis

Pros

  • CME Group achieved record revenue and adjusted operating income in H1 2025, with second-quarter revenue rising 10% year-over-year to $1.7 billion.
  • The company experienced a record average daily volume of 30.2 million contracts in Q2 2025, showing strong client demand and market liquidity.
  • CME Group expanded its product offering and market access with 24/7 trading in cryptocurrency futures and options and a new partnership with FanDuel.

Considerations

  • Revenue showed a slight decrease in Q3 2025 compared to the previous year, falling to $1.5 billion from $1.58 billion.
  • The company’s business remains sensitive to macroeconomic uncertainty and market volatility, which can impact trading volumes and revenues.
  • High reliance on derivatives markets means CME Group faces competitive risks from other exchanges and changing regulatory environments.

Pros

  • Marsh & McLennan maintains a solid valuation with a current PE ratio of approximately 22.66, below its 5-year average, suggesting relative valuation discipline.
  • The company operates in diversified risk management, insurance brokerage, and consulting, providing steady revenue streams across sectors.
  • Marsh & McLennan benefits from consistent demand for its consultancy and insurance services amid evolving corporate risk landscapes.

Considerations

  • Its PE ratio is lower than some peer companies in the sector, indicating potentially slower growth expectations or market concerns.
  • The company is exposed to regulatory risks and insurance cycle fluctuations that can impact profitability and earnings stability.
  • Growth catalysts may be limited compared to more technology-driven or high-growth insurance and financial services firms.

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