Canadian Imperial Bank of Commerce (NYSE: CM) and First Citizens BancShares (NASDAQ:FCNCA) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, risk, valuation, institutional ownership, earnings, analyst recommendations and profitability.
Valuation & Earnings
This table compares Canadian Imperial Bank of Commerce and First Citizens BancShares’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Canadian Imperial Bank of Commerce||$16.73 billion||2.32||$3.59 billion||$8.89||9.82|
|First Citizens BancShares||$1.61 billion||3.04||$323.75 million||N/A||N/A|
This table compares Canadian Imperial Bank of Commerce and First Citizens BancShares’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Canadian Imperial Bank of Commerce||21.38%||17.57%||0.88%|
|First Citizens BancShares||20.11%||10.77%||1.01%|
Canadian Imperial Bank of Commerce pays an annual dividend of $4.19 per share and has a dividend yield of 4.8%. First Citizens BancShares pays an annual dividend of $1.40 per share and has a dividend yield of 0.3%. Canadian Imperial Bank of Commerce pays out 47.1% of its earnings in the form of a dividend. Canadian Imperial Bank of Commerce has increased its dividend for 2 consecutive years. Canadian Imperial Bank of Commerce is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Volatility & Risk
Canadian Imperial Bank of Commerce has a beta of 1.15, meaning that its stock price is 15% more volatile than the S&P 500. Comparatively, First Citizens BancShares has a beta of 1.12, meaning that its stock price is 12% more volatile than the S&P 500.
Institutional & Insider Ownership
46.6% of Canadian Imperial Bank of Commerce shares are owned by institutional investors. Comparatively, 45.7% of First Citizens BancShares shares are owned by institutional investors. 19.2% of First Citizens BancShares shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
This is a breakdown of current ratings and recommmendations for Canadian Imperial Bank of Commerce and First Citizens BancShares, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Canadian Imperial Bank of Commerce||1||2||4||0||2.43|
|First Citizens BancShares||0||0||0||0||N/A|
Canadian Imperial Bank of Commerce presently has a consensus target price of $117.17, indicating a potential upside of 34.26%. Given Canadian Imperial Bank of Commerce’s higher probable upside, equities analysts clearly believe Canadian Imperial Bank of Commerce is more favorable than First Citizens BancShares.
Canadian Imperial Bank of Commerce beats First Citizens BancShares on 10 of the 15 factors compared between the two stocks.
Canadian Imperial Bank of Commerce Company Profile
Canadian Imperial Bank of Commerce operates as a global financial institution, which provides a full range of financial products and services to individual, small business, commercial, corporate and institutional clients. It operates through the following segments: Canadian Personal and Business Banking; Canadian Commercial Banking and Wealth Management; U.S. Commercial Banking and Wealth Management; Capital Markets; and Corporate and Other. The Canadian Personal and Small Business Banking segment provides personal and small business clients across Canada with financial advice. The Canadian Commercial Banking and Wealth Management segment offers relationship-oriented commercial and private banking, as well as wealth management services to meet the needs of middle-market companies, entrepreneurs, high-net-worth individuals and families, along with institutional clients across Canada. The U.S. Commercial Banking and Wealth Management segment gives relationship-oriented commercial, personal and small business banking, as well as wealth management services to meet the needs of middle-market companies, executives, entrepreneurs, high-net-worth individuals and families in the markets it serve in the U.S. The Capital Markets segment manages integrated global markets products and services, investment banking advisory and execution, corporate banking and top-ranked research to corporate, government and institutional clients around the world. The Corporate and Other includes the following functional groups- Administration, Client Connectivity and Innovation, Finance, Human Resources and Communications, Internal Audit, Risk Management, and Technology and Operations, as well as other support groups. The company was founded on June 1, 1961 and is headquartered in Toronto, Canada.
First Citizens BancShares Company Profile
First Citizens BancShares, Inc. operates as the holding company for First-Citizens Bank & Trust Company that provides banking services to retail and commercial customers. Its deposit products include checking, savings, money market and time deposit accounts. The company's loan products portfolio comprises commercial construction and land development, commercial mortgage, commercial and industrial, lease financing, and other commercial real estate loans; and noncommercial construction and land development, residential mortgage, revolving mortgage, consumer loans, and construction and land development loans. It also offers treasury services products, cardholder and merchant services, wealth management services, and various other products and services; investment services, including annuities, discount brokerage services, and third-party mutual funds, as well as investment advisory services; trust and asset management services; and title insurance products. The company offers its products and services through its branch network, as well as through digital banking, telephone banking, and various ATM networks. As of December 31, 2017, it operated 545 branches in Arizona, California, Colorado, Florida, Georgia, Illinois, Kansas, Maryland, Minnesota, Missouri, New Mexico, North Carolina, Oklahoma, Oregon, South Carolina, Tennessee, Texas, Virginia, Washington, West Virginia, and Wisconsin. The company was founded in 1898 and is headquartered in Raleigh, North Carolina.
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