Canadian Imperial Bank of Commerce (NYSE: CM) and Macro Bank (NYSE:BMA) are both mid-cap finance companies, but which is the better investment? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, valuation, analyst recommendations and dividends.
Institutional and Insider Ownership
48.5% of Canadian Imperial Bank of Commerce shares are owned by institutional investors. Comparatively, 24.2% of Macro 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.
Profitability
This table compares Canadian Imperial Bank of Commerce and Macro Bank’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Canadian Imperial Bank of Commerce | 24.30% | 18.58% | 0.85% |
| Macro Bank | 17.98% | 27.55% | 4.44% |
Analyst Recommendations
This is a summary of current recommendations and price targets for Canadian Imperial Bank of Commerce and Macro Bank, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Canadian Imperial Bank of Commerce | 1 | 5 | 3 | 0 | 2.22 |
| Macro Bank | 0 | 1 | 2 | 0 | 2.67 |
Canadian Imperial Bank of Commerce currently has a consensus price target of $104.86, suggesting a potential upside of 24.31%. Macro Bank has a consensus price target of $86.50, suggesting a potential downside of 17.22%. Given Canadian Imperial Bank of Commerce’s higher possible upside, equities analysts clearly believe Canadian Imperial Bank of Commerce is more favorable than Macro Bank.
Earnings & Valuation
This table compares Canadian Imperial Bank of Commerce and Macro Bank’s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | EBITDA | Earnings Per Share | Price/Earnings Ratio | |
| Canadian Imperial Bank of Commerce | $11.71 billion | 2.89 | $3.67 billion | $9.13 | 9.24 |
| Macro Bank | $1.31 billion | 5.25 | $487.99 million | $7.41 | 14.10 |
Canadian Imperial Bank of Commerce has higher revenue and earnings than Macro Bank. Canadian Imperial Bank of Commerce is trading at a lower price-to-earnings ratio than Macro Bank, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Canadian Imperial Bank of Commerce has a beta of 1.09, indicating that its stock price is 9% more volatile than the S&P 500. Comparatively, Macro Bank has a beta of 1.39, indicating that its stock price is 39% more volatile than the S&P 500.
Dividends
Canadian Imperial Bank of Commerce pays an annual dividend of $3.76 per share and has a dividend yield of 4.5%. Macro Bank pays an annual dividend of $0.75 per share and has a dividend yield of 0.7%. Canadian Imperial Bank of Commerce pays out 41.2% of its earnings in the form of a dividend. Macro Bank pays out 10.1% 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.
Summary
Canadian Imperial Bank of Commerce beats Macro Bank on 8 of the 15 factors compared between the two stocks.
About Canadian Imperial Bank of Commerce
Canadian Imperial Bank of Commerce (CIBC) is a global financial institution. The Company provides a range of financial products and services to approximately 11 million individual, small business, commercial, corporate and institutional clients in Canada and around the world. The Company operates through three segments: Retail and Business Banking, Wealth Management and Capital Markets. The Company’s Retail and Business Banking segment provides personal and business clients across Canada with financial advice, products and services in its banking centers or through remote channels, such as mobile advisors, telephone, online or mobile banking. The Company’s Wealth Management segment provides advice and investment solutions. The Company’s Capital Markets segment provides integrated credit and global markets products, investment banking advisory services and research to corporate, government and institutional clients around the world.
About Macro Bank
Banco Macro SA is an Argnetina-based financial institution (the Bank) that offers traditional bank products and services to companies, including those operating in regional economies, as well as to individuals. In addition, the Bank performs certain transactions through its subsidiaries, including mainly Banco del Tucuman, Macro Bank Ltd, Macro Securities SA, Macro Fiducia SA and Macro Fondos SGFCI SA. It has approximately two categories of customers, such as retail customers, including individuals and entrepreneurs and corporate customers, which include small, medium and large companies and major corporations. In addition, it provides services to over four provincial governments. It provides its corporate customers with traditional banking products and services, such as deposits, lending (including overdraft facilities), check cashing advances and factoring, guaranteed loans and credit lines for financing foreign trade and cash management services.
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