Canadian Imperial Bank of Commerce (NYSE:CM) and UniCredit (OTCMKTS:UNCRY) Head to Head Review

UniCredit (OTCMKTS:UNCRY) 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, analyst recommendations, profitability, institutional ownership, risk, dividends and earnings.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for UniCredit and Canadian Imperial Bank of Commerce, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
UniCredit	0	1	3	2	3.17
Canadian Imperial Bank of Commerce	0	4	5	0	2.56

Canadian Imperial Bank of Commerce has a consensus price target of $107.50, suggesting a potential upside of 9.39%. Given Canadian Imperial Bank of Commerce’s higher probable upside, analysts plainly believe Canadian Imperial Bank of Commerce is more favorable than UniCredit.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
UniCredit	32.88%	26.06%	2.08%
Canadian Imperial Bank of Commerce	13.57%	14.93%	0.77%

Dividends

UniCredit pays an annual dividend of $1.09 per share and has a dividend yield of 2.5%. Canadian Imperial Bank of Commerce pays an annual dividend of $3.06 per share and has a dividend yield of 3.1%. Canadian Imperial Bank of Commerce pays out 50.2% of its earnings in the form of a dividend. Canadian Imperial Bank of Commerce has raised its dividend for 14 consecutive years. Canadian Imperial Bank of Commerce is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Volatility & Risk

UniCredit has a beta of 0.92, suggesting that its share price is 8% less volatile than the S&P 500. Comparatively, Canadian Imperial Bank of Commerce has a beta of 1.02, suggesting that its share price is 2% more volatile than the S&P 500.

Earnings and Valuation

This table compares UniCredit 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
UniCredit	$48.38 billion	2.80	$10.52 billion	N/A	N/A
Canadian Imperial Bank of Commerce	$44.36 billion	2.05	$6.02 billion	$6.09	16.14

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

Insider and Institutional Ownership

0.3% of UniCredit shares are held by institutional investors. Comparatively, 49.9% of Canadian Imperial Bank of Commerce shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

UniCredit beats Canadian Imperial Bank of Commerce on 9 of the 15 factors compared between the two stocks.

About UniCredit

UniCredit S.p.A. provides commercial banking services in Italy, Germany, Central Europe, and Eastern Europe. It offers retail, private, and wealth management solutions; and institutional investor solutions. The company also provides corporate finance advisory, rating advisory, financial sponsor, patient capital, capital structure advisory, and finance solutions, as well as securities services. In addition, it offers transactional and risk management, and strategic advisory and funding services; group trade and correspondent banking services; and payments and cash management solutions. The company serves SME, corporate, multinational corporate, financial institution, and public sector clients, as well as retail, private banking, wealth management, and family office clients. The company was founded in 1870 and is headquartered in Milan, Italy.

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.