Investors choosing between market infrastructure and financial data often weigh stability against growth. Today, we compare the derivatives exchange operator CME Group (NASDAQ:CME) and the investment research and data provider Morningstar (NASDAQ:MORN) to see which is a better buy. <\/p>\n
CME Group runs futures and options markets across six asset classes, and Morningstar provides investment research and data. Both play important roles in global financial markets, and this comparison looks at how their finances and risks differ as of the latest reported quarter. <\/p>\n
The case for CME <\/p>\n
CME Group enables clients to trade futures and options across six asset classes, including interest rates and energy. Its 2025 annual report describes a 10-year strategic partnership with Google Cloud, a unit of Alphabet (NASDAQ:GOOGL), that it signed in 2021. The report also describes a joint venture with FanDuel, a part of Flutter Entertainment (NYSE:FLUT), that launched a prediction markets app for retail customers in December 2025. One firm represented 12% of CME’s clearing and transaction fees revenue in 2025, and that concentration adds risk. <\/p>\n
In 2025, revenue reached $6.5 billion, up 6.4% from the prior year. Net income was about $4.1 billion, a net margin of roughly 62%. In the second quarter of 2026, revenue was $1.71 billion, up 0.8% from the prior year, and first-half revenue was $3.59 billion, up 7.6%. On Oct. 2, CME also reported record third-quarter average daily volume of 29.4 million contracts, up 16% from a year earlier. <\/p>\n
On Sept. 10, CME said it plans to start CME Securities Clearing, a clearing agency designed to help market participants comply with the SEC’s Treasury clearing rule, on Dec. 7, 2026, pending regulatory approvals. <\/p>\n
At the end of 2025, CME’s debt-to-equity ratio, calculated from the balance sheet, was about 0.12x, based on $3.4 billion of long-term debt, no short-term debt, and $28.7 billion of shareholders’ equity, and about 0.13x on June 30, 2026, based on $3.4 billion of long-term debt and $26.5 billion of equity. Debt for both companies in this comparison excludes operating leases. <\/p>\n
The current ratio, which compares short-term assets with short-term liabilities, was about 1.0x based on CME’s reported balance sheet. That figure says little by itself, because roughly $160 billion of performance bonds and guaranty fund deposits from clearing firms are listed as both a current asset and a current liability. <\/p>\n
Free cash flow was about $4.2 billion for 2025, calculated here as $4.28 billion of operating cash flow less $84 million of property purchases. <\/p>\n
The case for Morningstar <\/p>\n
Morningstar provides investment research and data, and license-based products made up about 70% of its 2025 revenue. Its PitchBook unit, which Morningstar acquired in 2016, supplies private market data. <\/p>\n
PitchBook revenue rose 4.9% to $174.7 million in the second quarter of 2026, and Morningstar said licensed user counts were relatively flat from a year earlier. <\/p>\n
On Feb. 2, 2026, Morningstar completed its acquisition of the Center for Research in Security Prices (CRSP), a provider of stock market data and indexes, from the University of Chicago. According to its second-quarter 10-Q, the closing consideration was $363.0 million in cash. Its largest customer accounted for less than 3% of 2025 revenue, so customer concentration is low. <\/p>\n
In 2025, revenue reached $2.45 billion, up 7.5% from the prior year. Net income was $374.2 million, a net margin of about 15.3%. Operating income rose 8.6% to $526.6 million, but net income grew just 1.2%, partly because 2024 included a $45.3 million gain on a business sale and 2025 carried a higher tax bill. In the second quarter of 2026, revenue rose 9.6% to $663.2 million and operating income rose 28.4% to $160.6 million. <\/p>\n
At the end of 2025, Morningstar’s debt-to-equity ratio, calculated the same way, was about 0.9x, based on $1.07 billion of long-term debt, no current debt, and $1.22 billion of total equity. The calculated current ratio was about 1.0x, meaning short-term assets nearly matched the liabilities due within a year. <\/p>\n
Free cash flow was $442.6 million, which Morningstar defines as operating cash flow ($589.7 million) less capital expenditures ($147.1 million). Leverage has since risen, with total debt of $1.7 billion and equity of $1.02 billion on June 30, 2026, a period that included the CRSP purchase and $400 million in share repurchases. <\/p>\n
Risk profile comparison <\/p>\n
CME Group’s 2025 annual report names Intercontinental Exchange (NYSE:ICE) and Cboe Global Markets (BATS:CBOE) among its exchange competitors. <\/p>\n
Because trading runs on electronic platforms, the report says a security attack or breach could result in system failures and delays. In late November 2025, CME said a cooling issue at CyrusOne data centers had halted its markets, and CyrusOne attributed the problem to a chiller plant failure at its Aurora, Illinois, facility. Trading resumed on the morning of Nov. 28 after an outage of more than 10 hours, according to Bloomberg reporting. <\/p>\n
Trading volumes also depend on market volatility and economic conditions, and the annual report says material decreases in trading volume would have a material adverse effect on CME’s results. <\/p>\n
Leadership is changing too, with President and Chief Financial Officer Lynne Fitzpatrick set to succeed Chairman and CEO Terry Duffy as CEO on the later of March 1, 2027, and the date CME files its 2026 annual report. <\/p>\n
Morningstar’s annual report says a failure to uphold its independence, or even the perception of one, could harm its reputation. It names S&P Global (NYSE:SPGI) as a competitor in data and ratings and MSCI (NYSE:MSCI) as a competitor in private markets. <\/p>\n
The report also says free or low-cost online tools that use AI to scrape data could reduce the value of its products, and that the rise of passive investing may reduce the perceived value of its research on active strategies. <\/p>\n
Morningstar’s annual report says its Sustainalytics unit is adapting its ESG ratings business to the European Union’s ESG Rating Provider Regulation, which the European Securities and Markets Authority says applies from July 2, 2026. <\/p>\n
Valuation comparison <\/p>\n
Morningstar looks cheaper than CME Group on both its forward P\/E ratio, which compares the share price with expected earnings, and its P\/S ratio, which measures market value relative to sales over the past 12 months. <\/p>\n
Valuation metrics include sourcing from Financial Modeling Prep (FMP) and may differ from other data providers. <\/p>\n
Which stock would I buy in 2026? <\/p>\n
CME Group looks like the better buy to me, though I’d be a patient buyer who expects its profits to rise and fall with trading volume, which depends on market conditions the company can’t control. <\/p>\n
I like the business for how much of each sales dollar turns into profit, roughly 62 cents in 2025, and for a balance sheet that carries very little debt. Clearing firms deposit collateral with CME’s clearinghouse, which makes clearing a core part of the business. <\/p>\n
Chairman and CEO Terry Duffy called the first half of 2026 the strongest in the company’s history, and third-quarter trading volume set a record. The stock trades at a premium to Morningstar, which becomes a risk if volume slows. <\/p>\n
Morningstar’s lower valuation is appealing, and its revenue has grown a little faster this year. Still, debt had climbed to about 1.7 times equity by June 30, 2026, against about 0.13 times for CME, after share repurchases and the CRSP purchase, and PitchBook’s licensed user counts were relatively flat in the latest quarter. <\/p>\n
That makes the lower price look riskier to me than the multiples alone suggest. <\/p>\n
A low multiple doesn’t guarantee a bargain, as the Fool’s guide on how to value a stock<\/a> explains. A high-quality business can be worth a fair price for long-term holders. Either company could fit in a diversified portfolio, and I’d size any position so a slow stretch for trading volume wouldn’t force a sale. <\/p>\n Should you buy stock in CME Group right now? <\/p>\n Before you buy stock in CME Group, consider this: <\/p>\n The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks<\/a> for investors to buy now\u2026 and CME Group wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. <\/p>\n Consider when Netflix made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation, you’d have $380,795!* Or when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $1,390,634!* <\/p>\n Now, it’s worth noting Stock Advisor’s total average return is 946% \u2014 a market-crushing outperformance compared to 215% for the S&P 500. Don’t miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. <\/p>\n See the 10 stocks \u00bb<\/a> <\/p>\n *Stock Advisor returns as of October 13, 2026. <\/p>\n Mike Schwenk<\/a> has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, CME Group, MSCI, and S&P Global. The Motley Fool recommends Cboe Global Markets, Flutter Entertainment Plc, and Intercontinental Exchange. The Motley Fool has a disclosure policy<\/a>. <\/p>\n