Commerce Bancshares (NASDAQ: CBSH) is one of 312 public companies in the “Banks” industry, but how does it contrast to its peers? We will compare Commerce Bancshares to related businesses based on the strength of its valuation, profitability, dividends, institutional ownership, risk, earnings and analyst recommendations.

Dividends

Commerce Bancshares pays an annual dividend of $0.90 per share and has a dividend yield of 1.6%. Commerce Bancshares pays out 31.9% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 2.0% and pay out 35.2% of their earnings in the form of a dividend. Commerce Bancshares has raised its dividend for 48 consecutive years.

Institutional & Insider Ownership

69.1% of Commerce Bancshares shares are owned by institutional investors. Comparatively, 52.4% of shares of all “Banks” companies are owned by institutional investors. 4.3% of Commerce Bancshares shares are owned by company insiders. Comparatively, 10.4% of shares of all “Banks” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Commerce Bancshares and its peers top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Commerce Bancshares $1.19 billion $275.39 million 20.08
Commerce Bancshares Competitors $5.51 billion $821.37 million 378.19

Commerce Bancshares’ peers have higher revenue and earnings than Commerce Bancshares. Commerce Bancshares is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Volatility and Risk

Commerce Bancshares has a beta of 0.8, indicating that its share price is 20% less volatile than the S&P 500. Comparatively, Commerce Bancshares’ peers have a beta of 0.80, indicating that their average share price is 20% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations for Commerce Bancshares and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Commerce Bancshares 3 5 0 0 1.63
Commerce Bancshares Competitors 2142 8383 8420 330 2.36

Commerce Bancshares presently has a consensus price target of $55.43, suggesting a potential downside of 2.10%. As a group, “Banks” companies have a potential upside of 0.13%. Given Commerce Bancshares’ peers stronger consensus rating and higher possible upside, analysts clearly believe Commerce Bancshares has less favorable growth aspects than its peers.

Profitability

This table compares Commerce Bancshares and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Commerce Bancshares 23.93% 12.08% 1.17%
Commerce Bancshares Competitors 18.49% 8.30% 0.94%

Summary

Commerce Bancshares peers beat Commerce Bancshares on 10 of the 15 factors compared.

About Commerce Bancshares

Commerce Bancshares, Inc. is a bank holding company of Commerce Bank (the Bank). The Bank is engaged in general banking business, providing a range of retail, mortgage banking, corporate, investment, trust and asset management products and services to individuals and businesses. The Company operates through three segments: Consumer, Commercial and Wealth. The Consumer segment includes the consumer portion of the retail branch network (loans, deposits and other personal banking services), indirect and other consumer financing, and consumer debit and credit bank cards. The Commercial segment provides corporate lending, leasing, international services, and business, government deposit, and related commercial cash management services, as well as merchant and commercial bank card products. The Wealth segment provides traditional trust and estate tax planning, advisory and discretionary investment management, and brokerage services, and includes the Private Banking product portfolio.

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