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How Did Markit Perform in 3Q15 Compared to Its Peers and ETFs?

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Markit and its peers

In this article, we’ll compare Markit to its industry peers.

  • The PE (price-to-earnings) ratios of Markit (MRKT), Intercontinental Exchange (ICE), FactSet Research Systems (FDS), MSCI (MSCI), and Morningstar (MORN) are 28.8x, 24.9x, 30.7x, 35.4x, and 28.1x, respectively.

  • The PBV (price-to-book value) ratios of Markit, Intercontinental Exchange, MSCI, and Morningstar are 2.6x, 2.4x, 6.5x, and 5.2x, respectively.

As you can see, most of Markit’s peers have outperformed Markit based on PBV.

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ETFs that invest in Markit

The Renaissance IPO ETF (IPO) invests 0.73% of its holdings in Markit. The ETF tracks a market-cap-weighted index of recent US-listed IPOs. The fund acquires issues within 90 days or sooner after an IPO and sells after two years.

The Guggenheim Mid-Cap Core ETF (CZA) invests 0.71% of its holdings in Markit. The ETF tracks the Zacks Mid-Cap Core Index, a proprietary selected portfolio of 100 mid-cap stocks, which seeks to outperform pure market-cap indexes.

The SPDR S&P International Mid Cap ETF (MDD) invests 0.09% of its holdings in Markit. The ETF tracks a market-cap-weighted index of mid-cap companies in developed countries outside the United States.

Markit compared to its ETFs

Following is an analysis of Markit and its ETFs:

  • The year-to-date price movements of Markit, IPO, CZA, and MDD are 12.4%, -5.3%, 0.26%, and 4.8%, respectively.
  • The PE ratios of Markit, IPO, CZA, and MDD are 28.8x, 36.6x, 16.9x, and 20.8x, respectively.
  • The PBV ratios of Markit, IPO, CZA, and MDD are 2.6x, 2.5x, 2.2x, and 1.5x, respectively.

As you can see, Markit has outperformed its ETFs based on price movement, PE, and PBV.

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