Interactive Brokers Group, Inc. (IBKR) vs Tradeweb Markets Inc. (TW)

Interactive Brokers Group, Inc. and Tradeweb Markets Inc. are both Capital Markets companies. Interactive Brokers Group, Inc. is the larger, with a market value of $40.9B against $23.7B — 1.7× the size. Tradeweb Markets Inc. trades at the lower P/E: 24.1× against 35.3×. Interactive Brokers Group, Inc. grew revenue faster over the last twelve months: 21.3% against 14.0%. Tradeweb Markets Inc. has the higher net margin (40.7% vs 16.4%) and the higher return on invested capital (11.4% vs 0.00%). Both pay a dividend; Interactive Brokers Group, Inc. yields more (0.42% vs 0.40%). Across the 21 metrics below, Interactive Brokers Group, Inc. leads on 12 and Tradeweb Markets Inc. on 9.

Valuation

Metric IBKR TW Capital Markets median
P/E 35.25 24.07 15.78
P/S 5.82 9.73 2.32
P/B 1.80 2.93 1.89
Price to free cash flow 2.52 19.97 6.25
EV/EBITDA n/m 16.06 8.87
EV/Sales (12.76) 8.81 2.28
Earnings yield 2.84% 4.15% (3.77%)
Free cash flow yield 39.64% 5.01% (1.49%)

Profitability

Metric IBKR TW Capital Markets median
Gross margin 93.72% 100.00% 62.80%
Operating margin 78.19% 43.68% 0.00%
Net margin 16.41% 40.66% (0.55%)
Free cash flow margin 230.72% 48.75% 0.00%
Return on equity 5.52% 12.76% 0.00%
Return on assets 0.53% 11.00% 0.00%
Return on invested capital 0.00% 11.41% 0.00%

Growth

Metric IBKR TW Capital Markets median
Revenue growth (TTM) 21.28% 14.04% 21.02%
EPS growth (last fiscal year) 28.14% 62.23% —
Revenue growth, 5-year CAGR 22.84% 18.12% 18.16%
Net income growth, 5-year CAGR 38.23% 37.35% 0.00%

Health

Metric IBKR TW Capital Markets median
Debt to equity 0.00 0.00 0.08
Current ratio 1.09 6.23 1.51
Net debt to EBITDA (20.66) (1.92) (0.24)

Dividend

Metric IBKR TW Capital Markets median
Dividend yield 0.42% 0.40% 2.20%
Payout ratio 0.08 0.22 0.00

Size

Metric IBKR TW Capital Markets median
Market cap 40.91b 23.67b 724.58m

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