Canadian Imperial Bank of Commerce (NYSE:CM) and American Business Bank (OTCMKTS:AMBZ) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, analyst recommendations, valuation, earnings and risk.
This table compares Canadian Imperial Bank of Commerce and American Business Bank’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Canadian Imperial Bank of Commerce||20.85%||17.35%||0.93%|
|American Business Bank||N/A||N/A||N/A|
Risk & Volatility
Canadian Imperial Bank of Commerce has a beta of 1.18, meaning that its share price is 18% more volatile than the S&P 500. Comparatively, American Business Bank has a beta of 0.42, meaning that its share price is 58% less volatile than the S&P 500.
This is a breakdown of current recommendations and price targets for Canadian Imperial Bank of Commerce and American Business Bank, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Canadian Imperial Bank of Commerce||0||4||4||0||2.50|
|American Business Bank||0||0||0||0||N/A|
Canadian Imperial Bank of Commerce currently has a consensus target price of $132.50, suggesting a potential upside of 64.37%. Given Canadian Imperial Bank of Commerce’s higher probable upside, analysts plainly believe Canadian Imperial Bank of Commerce is more favorable than American Business Bank.
Institutional & Insider Ownership
46.1% of Canadian Imperial Bank of Commerce shares are owned by institutional investors. Comparatively, 2.8% of American Business Bank shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Earnings and Valuation
This table compares Canadian Imperial Bank of Commerce and American Business Bank’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Canadian Imperial Bank of Commerce||$19.34 billion||1.85||$4.09 billion||$9.34||8.63|
|American Business Bank||$57.86 million||4.94||$8.32 million||N/A||N/A|
Canadian Imperial Bank of Commerce has higher revenue and earnings than American Business Bank.
Canadian Imperial Bank of Commerce pays an annual dividend of $4.17 per share and has a dividend yield of 5.2%. American Business Bank does not pay a dividend. Canadian Imperial Bank of Commerce pays out 44.6% of its earnings in the form of a dividend. Canadian Imperial Bank of Commerce has raised its dividend for 2 consecutive years.
Canadian Imperial Bank of Commerce beats American Business Bank on 11 of the 14 factors compared between the two stocks.
About Canadian Imperial Bank of Commerce
Canadian Imperial Bank of Commerce, a diversified financial institution, provides various financial products and services to individual, small business, commercial, corporate, and institutional clients in Canada, the United States, and internationally. The company operates through four strategic business units: Canadian Personal and Small Business Banking; Canadian Commercial Banking and Wealth Management; U.S. Commercial Banking and Wealth Management; and Capital Markets. It offers chequing, savings, tax free savings, and business accounts; loans, lines of credit, student lines of credit, and business and agriculture loans; fixed and variable rate, first time home buyer, and commercial mortgages; rapid and franchise financing services; and home power plan solutions. The company also provides prepaid, credit, and commercial cards; and guaranteed investment certificates, investment banking, mutual funds, structured notes, education RESPs, and disability RDSPs, as well as portfolio, business, and investment solutions. In addition, it offers government supported programs; travel and creditor insurance products; specialty services, such as established business, agriculture, and indigenous banking services, as well as banking services for professionals; and custody, corporate trust, and transfer agency services. Further, the company provides student, youth, senior, newcomers, and foreign workers banking offers, as well as banking bundles. Additionally, it offers overdraft protection, switch kit, retirement planning, precious metal purchasing, cash management, merchant, trade finance, correspondent banking, community commitment, asset management, self-directed brokerage, and online foreign exchange services, as well as mobile, online, and ATM services. The company also operates an advice center. Canadian Imperial Bank of Commerce was founded in 1867 and is headquartered in Toronto, Canada.
About American Business Bank
American Business Bank provides various banking and financial services to wholesalers, manufacturers, businesses, professionals, and non-profits in California. Its deposit products include checking, money market, savings, business demand deposit, business money market, special deposit, zero balance, and sweep accounts, as well as certificates of deposit. The company's loan products comprise personal loans, lines of credit, short term working capital lines, term loans, commercial/industrial real estate loans, and accounts receivable lines. It also offers various services, such as telephone notification, lock box processing, investment, courier, remote deposit, consulting, general business advice, investment banking, investment management, equipment leasing, residential mortgage lending, and professional referral services, as well as online banking services consisting of bill payment, fund transfer, account information, automatic clearing house origination, stop payment, and wire transfer services; and provides credit cards and ATM cards. In addition, the company offers international banking services, including international money transfer, letters of credit, foreign currency deposit, documentary and cleaning collection, and foreign currency exchange services. It operates through five loan production offices in Anaheim, Irvine, Torrance, the Warner Center, and Ontario. American Business Bank was founded in 1998 and is headquartered in Los Angeles, California.
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