Head-To-Head Comparison: Canadian Imperial Bank of Commerce (CM) versus Its Rivals

Canadian Imperial Bank of Commerce (NYSE:CM) is one of 919 publicly-traded companies in the “Banks” industry, but how does it contrast to its competitors? We will compare Canadian Imperial Bank of Commerce to similar businesses based on the strength of its analyst recommendations, institutional ownership, earnings, profitability, valuation, risk and dividends.

Volatility and Risk

Canadian Imperial Bank of Commerce has a beta of 1.01, meaning that its share price is 1% more volatile than the S&P 500. Comparatively, Canadian Imperial Bank of Commerce’s competitors have a beta of 0.61, meaning that their average share price is 39% less volatile than the S&P 500.

Valuation and Earnings

This table compares Canadian Imperial Bank of Commerce and its competitors gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Canadian Imperial Bank of Commerce	$44.36 billion	$6.02 billion	15.44
Canadian Imperial Bank of Commerce Competitors	$37.93 billion	$2.42 billion	21.32

Canadian Imperial Bank of Commerce has higher revenue and earnings than its competitors. Canadian Imperial Bank of Commerce is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Analyst Recommendations

This is a summary of current recommendations and price targets for Canadian Imperial Bank of Commerce and its competitors, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Canadian Imperial Bank of Commerce	0	5	4	1	2.60
Canadian Imperial Bank of Commerce Competitors	7490	30240	27843	1488	2.35

Canadian Imperial Bank of Commerce presently has a consensus target price of $160.00, indicating a potential upside of 38.32%. As a group, “Banks” companies have a potential upside of 14.60%. Given Canadian Imperial Bank of Commerce’s stronger consensus rating and higher probable upside, analysts plainly believe Canadian Imperial Bank of Commerce is more favorable than its competitors.

Dividends

Canadian Imperial Bank of Commerce pays an annual dividend of $3.09 per share and has a dividend yield of 2.7%. Canadian Imperial Bank of Commerce pays out 41.3% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 8.9% and pay out 28.9% of their earnings in the form of a dividend. Canadian Imperial Bank of Commerce has increased its dividend for 14 consecutive years. Canadian Imperial Bank of Commerce lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Institutional and Insider Ownership

49.9% of Canadian Imperial Bank of Commerce shares are owned by institutional investors. Comparatively, 47.8% of shares of all “Banks” companies are owned by institutional investors. 9.7% of shares of all “Banks” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Canadian Imperial Bank of Commerce and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Canadian Imperial Bank of Commerce	16.09%	17.02%	0.87%
Canadian Imperial Bank of Commerce Competitors	15.64%	9.43%	0.93%

Summary

Canadian Imperial Bank of Commerce beats its competitors on 9 of the 15 factors compared.

Canadian Imperial Bank of Commerce Company Profile

Canadian Imperial Bank of Commerce (CIBC) is a diversified financial institution headquartered in Toronto, Canada. It traces its roots to the Canadian Bank of Commerce, founded in 1867, and was formed in 1961 through the merger of the Canadian Bank of Commerce and the Imperial Bank of Canada. CIBC provides personal and business banking, commercial banking, wealth management, and capital markets services. Its offerings include deposit accounts, mortgages, lending, payment services, investment and financial advice, and financing and advisory services for businesses and institutional clients.