MarketAxess Holdings Inc. (MKTX) vs Virtu Financial, Inc. (VIRT)

MarketAxess Holdings Inc. and Virtu Financial, Inc. are both Capital Markets companies. Virtu Financial, Inc. is the larger, with a market value of $8.2B against $5.8B — 1.4× the size. Virtu Financial, Inc. trades at the lower P/E: 8.9× against 19.3×. Virtu Financial, Inc. grew revenue faster over the last twelve months: 20.8% against 3.93%. MarketAxess Holdings Inc. has the higher net margin (35.2% vs 12.7%) and the higher return on invested capital (24.8% vs 0.00%). Both pay a dividend; Virtu Financial, Inc. yields more (5.78% vs 1.35%). Across the 22 metrics below, Virtu Financial, Inc. leads on 13 and MarketAxess Holdings Inc. on 9.

Valuation

Metric MKTX VIRT Capital Markets median
P/E 19.32 8.87 15.78
P/S 6.64 1.15 2.32
P/B 4.67 2.01 1.89
Price to free cash flow 40.54 9.78 6.25
EV/EBITDA 12.40 n/m 8.87
EV/Sales 6.24 (0.01) 2.28
Earnings yield 5.18% 11.27% (3.77%)
Free cash flow yield 2.47% 10.23% (1.49%)

Profitability

Metric MKTX VIRT Capital Markets median
Gross margin 100.00% 81.77% 62.80%
Operating margin 40.50% 49.26% 0.00%
Net margin 35.22% 12.70% (0.55%)
Free cash flow margin 16.39% 11.73% 0.00%
Return on equity 23.34% 26.18% 0.00%
Return on assets 13.94% 2.22% 0.00%
Return on invested capital 24.79% 0.00% 0.00%

Growth

Metric MKTX VIRT Capital Markets median
Revenue growth (TTM) 3.93% 20.76% 21.02%
EPS growth (last fiscal year) (8.79%) 72.73% —
Revenue growth, 5-year CAGR 4.19% 2.32% 18.16%
Net income growth, 5-year CAGR (3.80%) (7.58%) 0.00%

Health

Metric MKTX VIRT Capital Markets median
Debt to equity 0.09 0.87 0.08
Current ratio 1.85 0.45 1.51
Net debt to EBITDA (1.22) (1.76) (0.24)

Dividend

Metric MKTX VIRT Capital Markets median
Dividend yield 1.35% 5.78% 2.20%
Payout ratio 0.42 0.69 0.00

Size

Metric MKTX VIRT Capital Markets median
Market cap 5.76b 8.17b 724.58m

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