Bancorp (NASDAQ:TBBK) versus Canadian Imperial Bank of Commerce (NYSE:CM) Critical Comparison

Canadian Imperial Bank of Commerce (NYSE:CM) and Bancorp (NASDAQ:TBBK) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, earnings, valuation, dividends, risk, profitability and institutional ownership.

Risk & Volatility

Canadian Imperial Bank of Commerce has a beta of 1.01, suggesting that its stock price is 1% more volatile than the S&P 500. Comparatively, Bancorp has a beta of 1.18, suggesting that its stock price is 18% more volatile than the S&P 500.

Institutional and Insider Ownership

49.9% of Canadian Imperial Bank of Commerce shares are owned by institutional investors. Comparatively, 96.2% of Bancorp shares are owned by institutional investors. 6.0% of Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Canadian Imperial Bank of Commerce and Bancorp, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Canadian Imperial Bank of Commerce	0	5	4	1	2.60
Bancorp	0	2	4	1	2.86

Canadian Imperial Bank of Commerce presently has a consensus price target of $167.00, indicating a potential upside of 41.93%. Bancorp has a consensus price target of $71.17, indicating a potential upside of 6.43%. Given Canadian Imperial Bank of Commerce’s higher possible upside, equities analysts plainly believe Canadian Imperial Bank of Commerce is more favorable than Bancorp.

Profitability

This table compares Canadian Imperial Bank of Commerce and Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Canadian Imperial Bank of Commerce	16.09%	17.02%	0.87%
Bancorp	27.72%	32.32%	2.50%

Earnings and Valuation

This table compares Canadian Imperial Bank of Commerce and Bancorp”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Canadian Imperial Bank of Commerce	$44.36 billion	2.42	$6.02 billion	$7.49	15.71
Bancorp	$879.70 million	3.10	$228.21 million	$5.32	12.57

Canadian Imperial Bank of Commerce has higher revenue and earnings than Bancorp. Bancorp 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.

Summary

Bancorp beats Canadian Imperial Bank of Commerce on 8 of the 13 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 personal, business, public sector, and institutional clients in Canada, the United States, and internationally. The company operates through Canadian Personal and Business Banking; Canadian Commercial Banking and Wealth Management; U.S. Commercial Banking and Wealth Management; Capital Markets and Direct Financial Services; and Corporate and Other segments. It offers checking, savings, and business accounts; mortgages; business, car, and other loans; lines of credit, student lines of credit, and agriculture loans; and small business financing and overdraft protection services. The company also provides investment and insurance services; credit cards; and ATMs, as well as mobile, online, and global money and wire transfer services. Canadian Imperial Bank of Commerce was founded in 1867 and is headquartered in Toronto, Canada.

About Bancorp

The Bancorp, Inc. operates as the bank holding company for The Bancorp Bank, National Association that provides banking products and services in the United States. It offers a range of deposit products and services, including checking, savings, time, money market, and commercial accounts; overdrafts; and certificates of deposit. The company also provides securities-backed lines of credit and insurance policy cash value-backed lines of credit; investor advisor financing; lease financing for commercial and government vehicle fleets, including trucks and other special purpose vehicles; commercial real estate bridge loans; and small business administration loans. In addition, it offers bill and other payment services; debit and prepaid card issuing services; card and bill payment, and automated clearing house processing services; and internet banking services. The company was incorporated in 1999 and is headquartered in Wilmington, Delaware.