Canadian Imperial Bank of Commerce (CM) Competitors

Royal Bank of Canada (TSE:RY) and Canadian Imperial Bank of Commerce (TSE:CM) 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 valuation, dividends, media sentiment, analyst recommendations, risk, institutional ownership, profitability and earnings.

Does the media favor RY or CM?

In the previous week, Royal Bank of Canada had 1 more articles in the media than Canadian Imperial Bank of Commerce. MarketBeat recorded 3 mentions for Royal Bank of Canada and 2 mentions for Canadian Imperial Bank of Commerce. Royal Bank of Canada's average media sentiment score of 0.25 beat Canadian Imperial Bank of Commerce's score of 0.00 indicating that Royal Bank of Canada is being referred to more favorably in the media.

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

Which has higher 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	C$57.52B	4.44	C$16.24B	C$11.48	15.72
Canadian Imperial Bank of Commerce	C$25.37B	3.69	C$7.07B	C$7.57	13.21

Is RY or CM a better dividend stock?

Royal Bank of Canada pays an annual dividend of C$5.68 per share and has a dividend yield of 3.1%. Canadian Imperial Bank of Commerce pays an annual dividend of C$3.60 per share and has a dividend yield of 3.6%. Royal Bank of Canada pays out 49.5% of its earnings in the form of a dividend. Canadian Imperial Bank of Commerce pays out 47.5% 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 prefer RY or CM?

Royal Bank of Canada presently has a consensus price target of C$184.54, indicating a potential upside of 2.31%. Canadian Imperial Bank of Commerce has a consensus price target of C$96.23, indicating a potential downside of 3.81%. Given Royal Bank of Canada's stronger consensus rating and higher possible upside, equities research analysts plainly believe Royal Bank of Canada is more favorable than Canadian Imperial Bank of Commerce.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Royal Bank of Canada	0 Sell rating(s)	2 Hold rating(s)	6 Buy rating(s)	3 Strong Buy rating(s)	3.09
Canadian Imperial Bank of Commerce	1 Sell rating(s)	3 Hold rating(s)	7 Buy rating(s)	1 Strong Buy rating(s)	2.67

Is RY or CM 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
Royal Bank of Canada	28.23%	13.27%	0.80%
Canadian Imperial Bank of Commerce	27.87%	12.61%	0.69%

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

52.5% of Royal Bank of Canada shares are owned by institutional investors. Comparatively, 56.0% of Canadian Imperial Bank of Commerce shares are owned by institutional investors. 0.0% of Canadian Imperial Bank of Commerce 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.

Which has more risk & volatility, RY or CM?

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

Summary

Royal Bank of Canada beats Canadian Imperial Bank of Commerce on 13 of the 19 factors compared between the two stocks.