Canadian Imperial Bank of Commerce (NYSE:CM) and Bancorp (NASDAQ:TBBK) Financial Comparison

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

Analyst Ratings

This is a summary of recent ratings for Bancorp and Canadian Imperial Bank of Commerce, as provided by MarketBeat.com.

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

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

Insider & Institutional Ownership

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

Risk and Volatility

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

Valuation and Earnings

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

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

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.

Profitability

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

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

Summary

Bancorp beats Canadian Imperial Bank of Commerce on 8 of the 13 factors compared between the two stocks.

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.

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.