Q: With these companies being in the Financial Exchanges and Data would TMX Group be considered a reasonable peer and favourable Canadian alternative with regard to growth prospects and valuation or do you have a few preferred alternatives? Thanks
5i Research Answer:
SPGI and CBOE can be considered peers to X, but at a smaller and less international scale. X has shown strong sales and earnings growth rates historically, even compared to CBOE and SPGI, and analyst estimates also call for slightly more consistent and higher growth for X compared to CBOE and SPGI. Due to its solid historical execution, we would give X the slight edge here today.