Key Points

• CME Group operates a dominant global derivatives marketplace with an industry-leading 62% net margin.

• Morningstar provides essentialinvestment researchand data that creates high recurring subscription revenue.

• Which financial infrastructure giant offers the best balance of growth and value for your portfolio?

• 10 stocks we like better than CME Group ›

Investors often face a choice between high-profit infrastructure and data-driven growth when evaluating the market today. Choosing between CME Group (NASDAQ:CME) and Morningstar (NASDAQ:MORN) requires understanding how their respective business models generate cash.

CME dominates the global marketplace for futures and options, essentially serving as the toll booth for financial risk management. Morningstar provides the essential research and ratings that guide millions of investment decisions. They are being compared because both are critical players in the infrastructure of modern finance.

The case for CME

CME Group operates the world’s leading derivatives marketplace within the financial stocks sector, where participants trade futures and options on various assets. In its latest annual report, filed for the period ending in 2025, the company noted that 85% of its volume comes from its exchange members. Its customer base includes global banks and professional trading firms, and it recently launched a prediction markets venture with Flutter Entertainment (NYSE:FLUT).

In fiscal 2025, revenue reached nearly $6.5 billion, up about 6.4% compared to the prior year. This performance led to net income of approximately $4 billion, which is the total profit remaining after all operating costs and taxes are paid. The company achieved a net margin of close to 62%, reflecting the low incremental costs of processing additional trades on its platform.

As of CME’s December 2025 balance sheet, the debt-to-equity ratio was roughly 0.1. This indicates that total debt is very low relative to the amount of money shareholders have invested. The current ratio, which compares short-term assets to liabilities, was approximately 1.03, while the company generated nearly $4.2 billion in free cash flow, which is cash left after paying for operations and equipment.

The case for Morningstar

Morningstar provides independent investment insights and data through a variety of software and subscription products. It serves a diverse group of customers, including wealth managers, asset managers, and individual investors. The company has also embraced new technology by integrating its data with artificial intelligence platforms from partners such as OpenAI.

In fiscal 2025, Morningstar reported nearly $2.4 billion in revenue, an increase of roughly 7.5% over the previous year. Net income was about $374.2 million, resulting in a net margin of approximately 15.3%. While this is lower than an exchange operator, it demonstrates the steady profitability of its subscription-based business model that relies on high-quality proprietary data.

As of its December 2025 balance sheet, Morningstar carried a debt-to-equity ratio of approximately 1.2. This means its total debt is slightly higher than the equity owned by its shareholders. The company maintained a current ratio of roughly 1 and generated close to $442.6 million in free cash flow, which represents the money available to pay back debt or reward shareholders.

Risk profile comparison

CME faces competition from other major exchanges like Intercontinental Exchange (NYSE:ICE) and Cboe Global Markets (NYSEMKT:CBOE). Operational risks are a factor, including potential system failures like the late 2025 cooling issue at a CyrusOne data center. Regulatory scrutiny regarding derivatives clearing and the evolving status of digital asset markets also remains a significant concern for the business.

Morningstar must manage reputational risks because providing both independent research and investment advisory services can lead to conflict-of-interest concerns. The company also faces technological risks associated with integrating artificial intelligence, as errors in data could hurt its brand. Competitive pressure is also constant from other data and software providers like MSCI (NYSE:MSCI) and S&P Global (NYSE:SPGI).

Valuation comparison

Morningstar currently offers a more attractive entry point based on future earnings estimates, while CME Group carries a higher premium due to its massive net margin.

MetricCMEMorningstarForward P/E22.515.5P/S ratio15.22.9

Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.

Which stock would I buy in 2026?

CME Group’s 62% net margin would be the envy of any company. That said, I am having trouble with the stock’s valuation.

It’s not a totally outrageous figure; several of the top tech companies in the trillion-dollar club have forward P/Es in the 20s (and some much higher). But CME Group is decidedly not a trillion-dollar megacap: Its market cap is roughly $100 billion.

And while CME shares have outperformed Morningstar stock over the past five years by roughly 70 percentage points, their returns over a 10-year time frame are basically the same. That said, across both periods, both equities lagged the S&P 500, sometimes trailing by more than 100 percentage points. Past performance is no guarantee of future results, but it is worth considering.

While neither stock is terribly attractive to me (CME’s expensive, Morningstar’s returns are disappointing), I lean toward CME because its net margin is eye-popping, and it pays a modest dividend. Plus, the company is poised to benefit regardless of what the market is doing: Both bear and bull market environments result in a lot of activity from large and small investors alike.

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Erin Kennedy has positions in CME Group. The Motley Fool has positions in and recommends 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.