Canadian Imperial Bank of Commerce (CM) Competitors

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

Which has more risk & volatility, CM or RY?

Canadian Imperial Bank of Commerce has a beta of 1.12, suggesting that its stock price is 12% more volatile than the S&P 500. Comparatively, Royal Bank of Canada has a beta of 0.84, suggesting that its stock price is 16% less volatile than the S&P 500.

Which has preferable earnings and valuation, CM or RY?

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
Canadian Imperial Bank of Commerce	C$25.37B	3.19	C$7.07B	C$7.57	11.44
Royal Bank of Canada	C$57.52B	4.16	C$16.24B	C$11.48	14.74

Is CM or RY more profitable?

Royal Bank of Canada has a net margin of 28.23% compared to Canadian Imperial Bank of Commerce's net margin of 27.87%. Royal Bank of Canada's return on equity of 13.27% beat Canadian Imperial Bank of Commerce's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Canadian Imperial Bank of Commerce	27.87%	12.61%	0.69%
Royal Bank of Canada	28.23%	13.27%	0.80%

Do insiders & institutionals have more ownership in CM or RY?

56.0% of Canadian Imperial Bank of Commerce shares are owned by institutional investors. Comparatively, 52.5% of Royal Bank of Canada shares are owned by institutional investors. 0.0% of Canadian Imperial Bank of Commerce shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Does the MarketBeat Community prefer CM or RY?

Royal Bank of Canada received 315 more outperform votes than Canadian Imperial Bank of Commerce when rated by MarketBeat users. Likewise, 58.40% of users gave Royal Bank of Canada an outperform vote while only 49.89% of users gave Canadian Imperial Bank of Commerce an outperform vote.

Company	Underperform	Outperform
Canadian Imperial Bank of Commerce	Outperform Votes 439 49.89%	Underperform Votes 441 50.11%
Royal Bank of Canada	Outperform Votes 754 58.40%	Underperform Votes 537 41.60%

Is CM or RY a better dividend stock?

Canadian Imperial Bank of Commerce pays an annual dividend of C$3.60 per share and has a dividend yield of 4.2%. Royal Bank of Canada pays an annual dividend of C$5.68 per share and has a dividend yield of 3.4%. Canadian Imperial Bank of Commerce pays out 47.5% of its earnings in the form of a dividend. Royal Bank of Canada pays out 49.5% 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. Canadian Imperial Bank of Commerce is clearly the better dividend stock, given its higher yield and lower payout ratio.

Do analysts recommend CM or RY?

Canadian Imperial Bank of Commerce currently has a consensus price target of C$93.00, suggesting a potential upside of 7.40%. Royal Bank of Canada has a consensus price target of C$180.50, suggesting a potential upside of 6.67%. Given Canadian Imperial Bank of Commerce's higher probable upside, equities analysts plainly 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
Canadian Imperial Bank of Commerce	1 Sell rating(s)	2 Hold rating(s)	9 Buy rating(s)	0 Strong Buy rating(s)	2.67
Royal Bank of Canada	0 Sell rating(s)	2 Hold rating(s)	6 Buy rating(s)	3 Strong Buy rating(s)	3.09

Does the media favor CM or RY?

In the previous week, Royal Bank of Canada had 3 more articles in the media than Canadian Imperial Bank of Commerce. MarketBeat recorded 14 mentions for Royal Bank of Canada and 11 mentions for Canadian Imperial Bank of Commerce. Royal Bank of Canada's average media sentiment score of -0.19 beat Canadian Imperial Bank of Commerce's score of -0.25 indicating that Royal Bank of Canada is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Canadian Imperial Bank of Commerce	1 Very Positive mention(s)	2 Positive mention(s)	2 Neutral mention(s)	1 Negative mention(s)	1 Very Negative mention(s)	Neutral
Royal Bank of Canada	1 Very Positive mention(s)	1 Positive mention(s)	4 Neutral mention(s)	5 Negative mention(s)	0 Very Negative mention(s)	Neutral

Summary

Royal Bank of Canada beats Canadian Imperial Bank of Commerce on 14 of the 21 factors compared between the two stocks.