Investigating Coinbase Glb's Standing In Capital Markets Industry Compared To Competitors

In the fast-paced and highly competitive business world of today, conducting thorough company analysis is essential for investors and industry observers. In this article, we will conduct an extensive industry comparison, evaluating Coinbase Glb COIN in relation to its major competitors in the Capital Markets industry. Through a detailed examination of key financial metrics, market standing, and growth prospects, our objective is to provide valuable insights and illuminate company's performance in the industry.

Coinbase Glb Background

Founded in 2012, Coinbase is the leading cryptocurrency exchange platform in the United States. The company intends to be the safe and regulation-compliant point of entry for retail investors and institutions into the cryptocurrency economy. Users can establish an account directly with the firm, instead of using an intermediary, and many choose to allow Coinbase to act as a custodian for their cryptocurrency, giving the company breadth beyond that of a traditional financial exchange. While the company still generates the majority of its revenue from transaction fees charged to its retail customers, Coinbase uses internal investment and acquisitions to expand into adjacent businesses, such as prime brokerage and data analytics.

Company P/E P/B P/S ROE EBITDA (in billions) Gross Profit (in billions) Revenue Growth
Coinbase Global Inc 47.78 7.43 16.19 16.39% $1.49 $1.25 111.98%
S&P Global Inc 48.07 3.91 10.59 2.89% $1.68 $2.37 10.47%
Intercontinental Exchange Inc 30.76 2.92 7.43 2.95% $1.59 $1.62 13.31%
CME Group Inc 22.71 2.64 12.75 3.13% $1.24 $1.28 3.21%
Nasdaq Inc 31.43 3.14 5.02 2.16% $0.57 $0.7 9.2%
Tradeweb Markets Inc 56.02 4.07 15.88 2.32% $0.24 $0.27 24.14%
FactSet Research Systems Inc 32.43 8.67 7.37 8.05% $0.22 $0.29 5.99%
Morningstar Inc 58.04 8.90 5.89 4.74% $0.15 $0.32 13.15%
MarketAxess Holdings Inc 29.19 5.71 9.86 5.56% $0.12 $0.15 3.52%
Donnelley Financial Solutions Inc 17.90 4.18 2.23 8.21% $0.06 $0.12 2.42%
Open Lending Corp 54.92 3.71 7.23 2.44% $0.01 $0.02 -19.85%
Value Line Inc 19.90 4.08 9.53 6.73% $0.0 $0.01 -8.39%
Average 36.49 4.72 8.53 4.47% $0.53 $0.65 5.2%

Upon analyzing Coinbase Glb, the following trends can be observed:

  • The current Price to Earnings ratio of 47.78 is 1.31x higher than the industry average, indicating the stock is priced at a premium level according to the market sentiment.

  • It could be trading at a premium in relation to its book value, as indicated by its Price to Book ratio of 7.43 which exceeds the industry average by 1.57x.

  • The Price to Sales ratio of 16.19, which is 1.9x the industry average, suggests the stock could potentially be overvalued in relation to its sales performance compared to its peers.

  • With a Return on Equity (ROE) of 16.39% that is 11.92% above the industry average, it appears that the company exhibits efficient use of equity to generate profits.

  • With higher Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $1.49 Billion, which is 2.81x above the industry average, the company demonstrates stronger profitability and robust cash flow generation.

  • Compared to its industry, the company has higher gross profit of $1.25 Billion, which indicates 1.92x above the industry average, indicating stronger profitability and higher earnings from its core operations.

  • The company is experiencing remarkable revenue growth, with a rate of 111.98%, outperforming the industry average of 5.2%.

Debt To Equity Ratio

The debt-to-equity (D/E) ratio is an important measure to assess the financial structure and risk profile of a company.

Considering the debt-to-equity ratio in industry comparisons allows for a concise evaluation of a company's financial health and risk profile, aiding in informed decision-making.

When examining Coinbase Glb in comparison to its top 4 peers with respect to the Debt-to-Equity ratio, the following information becomes apparent:

  • When comparing the debt-to-equity ratio, Coinbase Glb is in a stronger financial position compared to its top 4 peers.

  • The company has a lower level of debt relative to its equity, indicating a more favorable balance between the two with a lower debt-to-equity ratio of 0.52.

Key Takeaways

For Coinbase Glb, the PE, PB, and PS ratios are all high compared to its peers in the Capital Markets industry, indicating potentially overvalued stock prices. On the other hand, Coinbase Glb shows high ROE, EBITDA, gross profit, and revenue growth, suggesting strong operational performance and growth potential relative to industry competitors.

This article was generated by Benzinga's automated content engine and reviewed by an editor.

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