Head to Head Analysis: BBVA Banco Frances (BFR) and Canadian Imperial Bank of Commerce (CM)

Head to Head Analysis: BBVA Banco Frances (BFR) and Canadian Imperial Bank of Commerce (CM)

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

Analyst Ratings

This is a breakdown of current recommendations for BBVA Banco Frances and Canadian Imperial Bank of Commerce, as provided by MarketBeat.

Canadian Imperial Bank of Commerce has a consensus target price of $135.00, indicating a potential upside of 61.37%. 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 BBVA Banco Frances.

Risk & Volatility

BBVA Banco Frances has a beta of 0.54, indicating that its stock price is 46% less volatile than the S&P 500. Comparatively, Canadian Imperial Bank of Commerce has a beta of 1.19, indicating that its stock price is 19% more volatile than the S&P 500.

Insider & Institutional Ownership

14.5% of BBVA Banco Frances shares are held by institutional investors. Comparatively, 45.9% of Canadian Imperial Bank of Commerce shares are held 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.

Dividends

BBVA Banco Frances pays an annual dividend of $0.21 per share and has a dividend yield of 1.6%. Canadian Imperial Bank of Commerce pays an annual dividend of $4.09 per share and has a dividend yield of 4.9%. BBVA Banco Frances pays out 18.4% of its earnings in the form of a dividend. Canadian Imperial Bank of Commerce pays out 43.8% 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. Canadian Imperial Bank of Commerce has raised its dividend for 3 consecutive years. Canadian Imperial Bank of Commerce is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

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

Earnings & Valuation

This table compares BBVA Banco Frances and Canadian Imperial Bank of Commerce’s top-line revenue, earnings per share and valuation.

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

Summary

Canadian Imperial Bank of Commerce beats BBVA Banco Frances on 12 of the 16 factors compared between the two stocks.

About BBVA Banco Frances

BBVA Banco Francés S.A., together with its subsidiaries, provides financial services to small and medium enterprises, and individual customers in Spain, Mexico, South America, the United States, Turkey, and rest of Eurasia. The company offers current, checking, and savings accounts, as well as demand and time deposits. It also provides personal and auto loans, and mortgages; loans to the public sector and local financial institutions, and short-term loans to companies, as well as overdraft lines of credit, discounted instruments, real estate mortgage loans, collateral loans, consumer loans, credit card loans, pre-financing and export financing, and short-term placements in foreign banks. In addition, the company offers fire, mixed family and comprehensive, civil liability, theft, personal accidents, umbrella life, debtor balances, funeral services, and other insurance coverage products; investment fund and pension fund management services; and stock exchange brokerage services. Further, it provides financing for the acquisition of new and second-hand Peugeot and Citroën vehicles through pledge loans, receivables from financial leases, and other financial products and in supplying services associated to the purchase, maintenance, and insurance coverage of motor vehicles; and secured loans for the purchase of VW, Audi, and Ducati new or second hand vehicles, credit through operating leases, and other financial products and services, as well as engages in security trading, investment banking, and other authorized operations. As of December 31, 2017, it operated a network of 251 retail branches, 15 in-company branches, 1 points of sale, and 2 point of express support, 797 ATMs, 822 self-service terminals, a telephone banking, and Internet banking services. The company was formerly known as Banco Francés S.A. and changed its name to BBVA Banco Francés S.A. in October 2000. The company was founded in 1886 and is headquartered in Buenos Aires, the Republic of Argentina.

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 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, and business accounts; mortgages; loans, lines of credit, student lines of credit, and business and agriculture loans; investment and insurance services; and prepaid and credit cards, as well as overdraft protection services. The company also provides day-to-day banking, borrowing and credit, investing and wealth, specialty, and international services; commercial and corporate banking services; trade finance, correspondent banking, and online foreign exchange services; and wholesale and asset management services. In addition, it offers investment banking advisory and execution services. The company serves its customers through its banking centers, as well as direct, mobile, and remote channels. Canadian Imperial Bank of Commerce was founded in 1867 and is headquartered in Toronto, Canada.

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