Analyzing Canadian Imperial Bank of Commerce (NYSE:CM) & First Financial Bankshares (NASDAQ:FFIN)

First Financial Bankshares (NASDAQ:FFIN) and Canadian Imperial Bank of Commerce (NYSE:CM) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, valuation, institutional ownership, risk, earnings, dividends and profitability.

Profitability

This table compares First Financial Bankshares and Canadian Imperial Bank of Commerce’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First Financial Bankshares	31.03%	14.00%	1.76%
Canadian Imperial Bank of Commerce	16.09%	17.02%	0.87%

Dividends

First Financial Bankshares pays an annual dividend of $0.88 per share and has a dividend yield of 2.8%. Canadian Imperial Bank of Commerce pays an annual dividend of $3.09 per share and has a dividend yield of 2.8%. First Financial Bankshares pays out 47.1% of its earnings in the form of a dividend. Canadian Imperial Bank of Commerce pays out 41.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. First Financial Bankshares has increased its dividend for 15 consecutive years and Canadian Imperial Bank of Commerce has increased its dividend for 14 consecutive years. First Financial Bankshares is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Risk & Volatility

First Financial Bankshares has a beta of 0.82, suggesting that its stock price is 18% less volatile than the S&P 500. Comparatively, Canadian Imperial Bank of Commerce has a beta of 1.02, suggesting that its stock price is 2% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and recommmendations for First Financial Bankshares and Canadian Imperial Bank of Commerce, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Financial Bankshares	0	6	0	1	2.29
Canadian Imperial Bank of Commerce	0	5	4	1	2.60

First Financial Bankshares presently has a consensus price target of $35.60, indicating a potential upside of 13.57%. Canadian Imperial Bank of Commerce has a consensus price target of $160.00, indicating a potential upside of 43.49%. Given Canadian Imperial Bank of Commerce’s stronger consensus rating and higher possible upside, analysts plainly believe Canadian Imperial Bank of Commerce is more favorable than First Financial Bankshares.

Insider and Institutional Ownership

69.8% of First Financial Bankshares shares are owned by institutional investors. Comparatively, 49.9% of Canadian Imperial Bank of Commerce shares are owned by institutional investors. 3.8% of First Financial Bankshares shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares First Financial Bankshares and Canadian Imperial Bank of Commerce”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Financial Bankshares	$833.20 million	5.39	$253.58 million	$1.87	16.76
Canadian Imperial Bank of Commerce	$32.17 billion	3.16	$6.02 billion	$7.49	14.89

Canadian Imperial Bank of Commerce has higher revenue and earnings than First Financial Bankshares. Canadian Imperial Bank of Commerce is trading at a lower price-to-earnings ratio than First Financial Bankshares, indicating that it is currently the more affordable of the two stocks.

Summary

Canadian Imperial Bank of Commerce beats First Financial Bankshares on 9 of the 17 factors compared between the two stocks.

About First Financial Bankshares

First Financial Bankshares, Inc., through its subsidiaries, provides commercial banking products and services in Texas. The company offers checking, savings and time deposits; automated teller machines, drive-in, and night deposit services; safe deposit facilities, remote deposit capture, internet banking, mobile banking, payroll cards, funds transfer, and performing other customary commercial banking services; securities brokerage services; and trust and wealth management services, including wealth management, estates administration, oil and gas management, testamentary trusts, revocable and irrevocable trusts, and agency accounts. It also provides commercial and industrial, municipal, agricultural, construction and development, farm, residential, and consumer auto and non-auto, as well as non-owner occupied and owner occupied commercial real estate loans. In addition, the company offers advisory and specialized services related to asset management, investing, purchasing, advertising, public relations, and technology services. First Financial Bankshares, Inc. was founded in 1890 and is headquartered in Abilene, Texas.

About Canadian Imperial Bank of Commerce

Canadian Imperial Bank of Commerce, a diversified financial institution, provides various financial products and services to personal, business, public sector, and institutional clients in Canada, the United States, and internationally. The company operates through Canadian Personal and Business Banking; Canadian Commercial Banking and Wealth Management; U.S. Commercial Banking and Wealth Management; Capital Markets and Direct Financial Services; and Corporate and Other segments. It offers checking, savings, and business accounts; mortgages; business, car, and other loans; lines of credit, student lines of credit, and agriculture loans; and small business financing and overdraft protection services. The company also provides investment and insurance services; credit cards; and ATMs, as well as mobile, online, and global money and wire transfer services. Canadian Imperial Bank of Commerce was founded in 1867 and is headquartered in Toronto, Canada.