Canadian Imperial Bank of Commerce (CM) Competitors

Royal Bank of Canada (NYSE:RY) and Canadian Imperial Bank of Commerce (NYSE:CM) are both large-cap finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, profitability, valuation, analyst recommendations, dividends, media sentiment, community ranking, earnings and institutional ownership.

Which has preferable valuation & earnings, RY or CM?

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

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Royal Bank of Canada	$87.48B	2.02	$11.02B	$8.27	15.12
Canadian Imperial Bank of Commerce	$41.16B	1.50	$3.70B	$5.09	12.85

Does the MarketBeat Community favor RY or CM?

Royal Bank of Canada received 255 more outperform votes than Canadian Imperial Bank of Commerce when rated by MarketBeat users. Likewise, 55.21% of users gave Royal Bank of Canada an outperform vote while only 53.13% of users gave Canadian Imperial Bank of Commerce an outperform vote.

Company	Underperform	Outperform
Royal Bank of Canada	Outperform Votes 747 55.21%	Underperform Votes 606 44.79%
Canadian Imperial Bank of Commerce	Outperform Votes 492 53.13%	Underperform Votes 434 46.87%

Is RY or CM more profitable?

Royal Bank of Canada has a net margin of 12.28% compared to Canadian Imperial Bank of Commerce's net margin of 10.66%. Royal Bank of Canada's return on equity of 15.17% beat Canadian Imperial Bank of Commerce's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Royal Bank of Canada	12.28%	15.17%	0.84%
Canadian Imperial Bank of Commerce	10.66%	13.50%	0.69%

Do analysts rate RY or CM?

Royal Bank of Canada presently has a consensus price target of $142.50, suggesting a potential upside of 13.98%. Canadian Imperial Bank of Commerce has a consensus price target of $81.00, suggesting a potential upside of 23.80%. Given Canadian Imperial Bank of Commerce's higher probable upside, analysts clearly believe Canadian Imperial Bank of Commerce is more favorable than Royal Bank of Canada.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Royal Bank of Canada	0 Sell rating(s)	1 Hold rating(s)	6 Buy rating(s)	1 Strong Buy rating(s)	3.00
Canadian Imperial Bank of Commerce	1 Sell rating(s)	1 Hold rating(s)	6 Buy rating(s)	0 Strong Buy rating(s)	2.63

Which has more volatility & risk, RY or CM?

Royal Bank of Canada has a beta of 0.86, suggesting that its share price is 14% less volatile than the S&P 500. Comparatively, Canadian Imperial Bank of Commerce has a beta of 1.06, suggesting that its share price is 6% more volatile than the S&P 500.

Does the media refer more to RY or CM?

In the previous week, Royal Bank of Canada had 9 more articles in the media than Canadian Imperial Bank of Commerce. MarketBeat recorded 21 mentions for Royal Bank of Canada and 12 mentions for Canadian Imperial Bank of Commerce. Canadian Imperial Bank of Commerce's average media sentiment score of 1.12 beat Royal Bank of Canada's score of 0.86 indicating that Canadian Imperial Bank of Commerce is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Royal Bank of Canada	13 Very Positive mention(s)	1 Positive mention(s)	2 Neutral mention(s)	1 Negative mention(s)	0 Very Negative mention(s)	Positive
Canadian Imperial Bank of Commerce	7 Very Positive mention(s)	0 Positive mention(s)	1 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

Do institutionals & insiders hold more shares of RY or CM?

45.3% of Royal Bank of Canada shares are held by institutional investors. Comparatively, 49.9% of Canadian Imperial Bank of Commerce shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Is RY or CM a better dividend stock?

Royal Bank of Canada pays an annual dividend of $4.20 per share and has a dividend yield of 3.4%. Canadian Imperial Bank of Commerce pays an annual dividend of $2.67 per share and has a dividend yield of 4.1%. Royal Bank of Canada pays out 50.8% of its earnings in the form of a dividend. Canadian Imperial Bank of Commerce pays out 52.5% 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. Royal Bank of Canada has raised its dividend for 14 consecutive years and Canadian Imperial Bank of Commerce has raised its dividend for 13 consecutive years.

Summary

Royal Bank of Canada beats Canadian Imperial Bank of Commerce on 15 of the 20 factors compared between the two stocks.