MarketAxess Holdings Inc. (MKTX) vs TeraWulf Inc. (WULF)

MarketAxess Holdings Inc. and TeraWulf Inc. are both Capital Markets companies. MarketAxess Holdings Inc. is the larger, with a market value of $5.8B against $5.0B — 1.2× the size. TeraWulf Inc. has negative trailing earnings, so its P/E is not meaningful; MarketAxess Holdings Inc. trades at 20.2×. TeraWulf Inc. grew revenue faster over the last twelve months: 13.9% against 3.85%. MarketAxess Holdings Inc. has the higher net margin (33.5% vs −410.9%) and the higher return on invested capital (15.6% vs −34.3%). Across the 18 metrics below, MarketAxess Holdings Inc. leads on 13 and TeraWulf Inc. on 5.

Valuation

Metric MKTX WULF Capital Markets median
P/E 20.20 n/m 14.23
P/S 6.68 34.11 2.10
P/B 4.57 7.48 1.40
Price to free cash flow 19.36 n/m 8.80
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 4.95% (16.04%) (8.06%)
Free cash flow yield 5.17% (36.69%) (1.15%)

Profitability

Metric MKTX WULF Capital Markets median
Gross margin 100.00% 69.17% 68.15%
Operating margin 39.15% (250.01%) 0.00%
Net margin 33.51% (410.92%) (0.34%)
Free cash flow margin 34.53% (139.97%) 0.00%
Return on equity 22.02% (141.48%) 0.00%
Return on assets 13.62% (14.79%) 0.00%
Return on invested capital 15.60% (34.26%) 0.00%

Growth

Metric MKTX WULF Capital Markets median
Revenue growth (TTM) 3.85% 13.87% 19.72%
EPS growth (last fiscal year) (8.79%) (690.48%) 16.79%
Revenue growth, 5-year CAGR 4.19% 57.07% 17.41%
Net income growth, 5-year CAGR (3.80%) 0.00% 0.00%

Health

Metric MKTX WULF Capital Markets median
Debt to equity 0.07 0.00 0.07
Current ratio 1.85 0.97 1.51
Net debt to EBITDA (1.22) (24.16) (0.03)

Dividend

Metric MKTX WULF Capital Markets median
Dividend yield 1.87% — 1.60%
Payout ratio 0.38 — 0.19

Size

Metric MKTX WULF Capital Markets median
Market cap 5.83b 5.03b 502.20m

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