Head-To-Head Contrast: National Bank (NYSE:NBHC) versus Canadian Imperial Bank of Commerce (NYSE:CM)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
National Bank	15.11%	8.35%	1.13%
Canadian Imperial Bank of Commerce	16.09%	17.02%	0.87%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for National Bank and Canadian Imperial Bank of Commerce, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
National Bank	0	3	2	0	2.40
Canadian Imperial Bank of Commerce	0	5	4	1	2.60

National Bank currently has a consensus target price of $44.67, indicating a potential upside of 19.34%. Canadian Imperial Bank of Commerce has a consensus target price of $160.00, indicating a potential upside of 36.04%. Given Canadian Imperial Bank of Commerce’s stronger consensus rating and higher probable upside, analysts clearly believe Canadian Imperial Bank of Commerce is more favorable than National Bank.

Institutional and Insider Ownership

92.7% of National Bank shares are owned by institutional investors. Comparatively, 49.9% of Canadian Imperial Bank of Commerce shares are owned by institutional investors. 6.8% of National Bank shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
National Bank	$587.34 million	2.84	$109.57 million	$2.38	15.73
Canadian Imperial Bank of Commerce	$32.17 billion	3.32	$6.02 billion	$7.49	15.70

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

Dividends

National Bank pays an annual dividend of $1.28 per share and has a dividend yield of 3.4%. Canadian Imperial Bank of Commerce pays an annual dividend of $3.09 per share and has a dividend yield of 2.6%. National Bank pays out 53.8% of its earnings in the form of a dividend. Canadian Imperial Bank of Commerce pays out 41.3% 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. National Bank has increased its dividend for 10 consecutive years and Canadian Imperial Bank of Commerce has increased its dividend for 14 consecutive years.

Risk & Volatility

National Bank has a beta of 0.84, indicating that its share price is 16% less volatile than the S&P 500. Comparatively, Canadian Imperial Bank of Commerce has a beta of 1.02, indicating that its share price is 2% more volatile than the S&P 500.

Summary

Canadian Imperial Bank of Commerce beats National Bank on 13 of the 18 factors compared between the two stocks.

About National Bank

National Bank Holdings Corporation operates as the bank holding company for NBH Bank that provides various banking products and financial services to commercial, business, and consumer clients in the United States. It offers deposit products, including checking, savings, money market, and other deposit accounts, including fixed-rate and fixed maturity time deposits. The company also provides commercial and industrial loans and leases, such as working capital loans, equipment loans, lender finance loans, food and agriculture loans, government and non-profit loans, owner occupied commercial real estate loans, and other commercial loans and leases; non-owner occupied commercial real estate loans consisting of loans on commercial properties, such as office buildings, warehouse/distribution buildings, multi-family, hospitality, and retail buildings; small business administration loans to support small businesses and entrepreneurs; term loans, line of credits, and real estate secured loans; residential real estate loans; and consumer loans. In addition, it offers treasury management solutions comprising online and mobile banking, commercial credit card, wire transfer, automated clearing house, electronic bill payment, lock box, remote deposit capture, merchant processing, cash vault, controlled disbursements, and fraud prevention services, as well as other auxiliary services, including account reconciliation, collections, repurchase accounts, zero balance accounts, and sweep accounts. The company operates through a network of banking centers located in Colorado, the greater Kansas City region, New Mexico, Utah, Wyoming, Idaho, and Texas. It also operates ATMs. The company was formerly known as NBH Holdings Corp. and changed its name to National Bank Holdings Corporation in March 2012. The company was incorporated in 2009 and is headquartered in Greenwood Village, Colorado.

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.