Banco Bilbao Vizcaya Argentaria (NYSE:BBVA) and Canadian Imperial Bank of Commerce (NYSE:CM) are both large-cap finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, institutional ownership, analyst recommendations, profitability, earnings, dividends and risk.

Risk & Volatility

Banco Bilbao Vizcaya Argentaria has a beta of 0.96, meaning that its share price is 4% less volatile than the S&P 500. Comparatively, Canadian Imperial Bank of Commerce has a beta of 1.2, meaning that its share price is 20% more volatile than the S&P 500.

Institutional & Insider Ownership

3.1% of Banco Bilbao Vizcaya Argentaria shares are held by institutional investors. Comparatively, 46.0% of Canadian Imperial Bank of Commerce shares are held by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and price targets for Banco Bilbao Vizcaya Argentaria and Canadian Imperial Bank of Commerce, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Banco Bilbao Vizcaya Argentaria 0 4 1 0 2.20
Canadian Imperial Bank of Commerce 1 3 5 0 2.44

Banco Bilbao Vizcaya Argentaria currently has a consensus price target of $7.79, indicating a potential upside of 20.03%. Canadian Imperial Bank of Commerce has a consensus price target of $121.14, indicating a potential upside of 27.59%. Given Canadian Imperial Bank of Commerce’s stronger consensus rating and higher probable upside, analysts plainly believe Canadian Imperial Bank of Commerce is more favorable than Banco Bilbao Vizcaya Argentaria.

Dividends

Banco Bilbao Vizcaya Argentaria pays an annual dividend of $0.30 per share and has a dividend yield of 4.6%. Canadian Imperial Bank of Commerce pays an annual dividend of $4.11 per share and has a dividend yield of 4.3%. Banco Bilbao Vizcaya Argentaria pays out 41.1% of its earnings in the form of a dividend. Canadian Imperial Bank of Commerce pays out 46.2% 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. Banco Bilbao Vizcaya Argentaria has increased its dividend for 6 consecutive years and Canadian Imperial Bank of Commerce has increased its dividend for 2 consecutive years. Banco Bilbao Vizcaya Argentaria is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Earnings and Valuation

This table compares Banco Bilbao Vizcaya Argentaria and Canadian Imperial Bank of Commerce’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Banco Bilbao Vizcaya Argentaria $28.55 billion 1.49 $3.98 billion $0.73 8.89
Canadian Imperial Bank of Commerce $16.73 billion 2.52 $3.59 billion $8.89 10.68

Banco Bilbao Vizcaya Argentaria has higher revenue and earnings than Canadian Imperial Bank of Commerce. Banco Bilbao Vizcaya Argentaria is trading at a lower price-to-earnings ratio than Canadian Imperial Bank of Commerce, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Banco Bilbao Vizcaya Argentaria and Canadian Imperial Bank of Commerce’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Banco Bilbao Vizcaya Argentaria 13.77% 7.01% 0.54%
Canadian Imperial Bank of Commerce 21.27% 17.77% 0.94%

Summary

Canadian Imperial Bank of Commerce beats Banco Bilbao Vizcaya Argentaria on 10 of the 16 factors compared between the two stocks.

About Banco Bilbao Vizcaya Argentaria

Banco Bilbao Vizcaya Argentaria, S.A., together with its subsidiaries, provides retail and wholesale banking, asset management, and private banking services. The company accepts various deposits, such as current and savings accounts, fixed-term deposits, subordinated deposits, and other accounts. It also offers loan products; and foreclosed real-estate assets from residential mortgages and developers, as well as lending to developers. The company also offers credit cards; and corporate and business banking, corporate and investment banking, and insurance. It operates in Spain, Mexico, South America, the United States, Turkey, Asia-Pacific, and rest of Europe. Banco Bilbao Vizcaya Argentaria, S.A. was founded in 1857 and is headquartered in Madrid, Spain.

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.

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