Tuesday, November 28, 2006


In the article written almost an year ago, we compared Nasdaq and Nyse. Let us revisit the comparison and contrast the two indices. Let us compare the two exchanges using the same metrics as before.

Both NDAQ and NYX have been volatile through out the year.

  • Creating a global network of stock exchanges - Advantage NYX. This position reversed from the last time as the NDAQ acquisition of London Stock Exchange didnt go through. However, NDAQ is making an aggressive bid for LSE and may yet succeed in owning the exchange. Current advanage - NYX
  • Trend - NYX got its pop after a while. NDAQ while down, will get back if it buys LSE. Current Advantage - NYX
  • Revenues - Although NYX and NDAQ have about the same revenue, NYX sells for a higher price. The reason for the premium is that NYX is executing better at the moment. Advantage - NYX
  • Stock dilution/debt - Both the exchanges will take on more debt or sell equities to expand. Neutral
  • Listing companies. NDAQ fees are lower but NYX still has the prestige. Advantage - NDAQ
  • Management - John Thain has done a great job for NYX. The Rich Grasso excess is a long memory at the moment. Advantage - NYX.
  • Cost cutting upside. NYX executed on its cost cutting upside. Neutral
  • Technology - Neutral
  • Valuation - NDAQ is cheaper although one might argue that it is because of the lower perceived potential for NDAQ. Advantage - NDAQ.

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