Canadian Imperial Bank of Commerce (NYSE:CM – Get Rating) and DNB Bank ASA (OTCMKTS:DNBBY – Get Rating) are both large-cap finance companies, but which stock is better? We will compare the two companies based on the strength of their analyst recommendations, valuation, risk, profitability, institutional ownership, earnings and dividends.
Institutional and insider ownership
43.7% of the shares of the Canadian Imperial Bank of Commerce are held by institutional investors. By comparison, 0.1% of DNB Bank ASA shares are held by institutional investors. Strong institutional ownership indicates that large fund managers, endowments, and hedge funds believe a company will outperform the market over the long term.
Valuation and benefits
This table compares the revenue, earnings per share (EPS) and valuation of Canadian Imperial Bank of Commerce and DNB Bank ASA.
|Gross revenue||Price/sales ratio||Net revenue||Earnings per share||Price/earnings ratio|
|Canadian Imperial Bank of Commerce||$18.53 billion||2.39||$5.11 billion||$5.62||8.72|
|DNB Bank ASA||$7.12 billion||3.92||$2.95 billion||$1.82||9.89|
The Canadian Imperial Bank of Commerce has higher revenues and profits than DNB Bank ASA. Canadian Imperial Bank of Commerce trades at a lower price-to-earnings ratio than DNB Bank ASA, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent recommendations for the Canadian Imperial Bank of Commerce and DNB Bank ASA, as reported by MarketBeat.
|Sales Ratings||Hold odds||Buy reviews||Strong buy odds||Rating|
|Canadian Imperial Bank of Commerce||0||5||6||0||2.55|
|DNB Bank ASA||1||4||5||0||2.40|
The Canadian Imperial Bank of Commerce currently has a consensus price target of $84.00, indicating a potential upside of 71.32%. DNB Bank ASA has a consensus price target of $201.67, indicating a potential upside of 1,020.37%. Given DNB Bank ASA’s likely higher upside, analysts clearly believe that DNB Bank ASA is more favorable than Canadian Imperial Bank of Commerce.
This table compares the net margins, return on equity and return on assets of Canadian Imperial Bank of Commerce and DNB Bank ASA.
|Net margins||Return on equity||return on assets|
|Canadian Imperial Bank of Commerce||26.74%||16.24%||0.81%|
|DNB Bank ASA||39.63%||10.10%||0.82%|
Risk and Volatility
Canadian Imperial Bank of Commerce has a beta of 1.04, which means its stock price is 4% more volatile than the S&P 500. In comparison, DNB Bank ASA has a beta of 1.35, which means that its stock price is 35% more volatile than the S&P. 500.
The Canadian Imperial Bank of Commerce pays an annual dividend of $2.62 per share and has a dividend yield of 5.3%. DNB Bank ASA pays an annual dividend of $1.62 per share and has a dividend yield of 9.0%. The Canadian Imperial Bank of Commerce pays 46.6% of its profits in the form of dividends. DNB Bank ASA pays out 89.0% of its profits in the form of a dividend, suggesting that it may not have enough profits to cover its dividend payment in the future. The Canadian Imperial Bank of Commerce has increased its dividend for 1 consecutive years.
Canadian Imperial Bank of Commerce beats DNB Bank ASA on 9 out of 16 factors compared between the two stocks.
Canadian Imperial Bank of Commerce Corporate Profile (Get an evaluation)
The Canadian Imperial Bank of Commerce, a diversified financial institution, offers a variety of financial products and services to retail, business, public sector and institutional clients in Canada, the United States and abroad. The company operates through four strategic business units: Canadian Personal and Commercial Banking; Commercial banking and wealth management in Canada; US Commercial Banking and Wealth Management; and capital markets. The company offers checking, savings and business accounts; mortgages; loans, lines of credit, student lines of credit, and business and agricultural loans; investment and insurance services; and credit cards, as well as overdraft protection services. It also provides retail, borrowing and credit, specialist, investment and wealth management, and international banking services; online correspondence banking and currency exchange services; and cash management services. The Canadian Imperial Bank of Commerce was founded in 1867 and is headquartered in Toronto, Canada.
DNB Bank ASA Company Profile (Get an evaluation)
DNB Bank ASA provides financial services to individuals and businesses in Norway and internationally. The Company offers personal banking products and services, including savings and investment products; loans, such as home loans and car and consumer loans; pet, home and property, travel and personal insurance products, as well as vehicle insurance products; retirement savings products; foreign exchange and treasury activities; and internet and mobile banking, as well as cards. It also provides corporate banking products and services comprising savings and investment products consisting of savings accounts, fixed rate deposits, exchange-traded products, bonds and commercial paper, management equity assets and services; financing, such as installment loans, overdraft facilities, bank guarantees, leasing, factoring, and trade and export finance services; transaction banking services; research, commodities, bonds and commercial paper, corporate finance, debt capital market, equities, foreign exchange and interest rates, and securities services; and Internet services, including online stock trading, online currency trading, electronic confirmation, stock execution, and investor and margin accounts, and retirement services. In addition, the Company provides investment banking services, such as mergers and acquisitions, and equity and debt capital markets services; foreign exchange, interest rate, equity, commodity, fixed income, research, private equity and securities services; and business banking. In addition, it offers private banking services. The company offers its products and services to various sectors, including energy; financial institutions; Health care; manufacturing; packaging and forest products; Seafood; shipping, offshore and logistics; and telecommunications, media and technology. DNB Bank ASA was founded in 1822 and is headquartered in Oslo, Norway.
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