Contrasting Canadian Imperial Bank of Commerce (NYSE:CM) & Svenska Handelsbanken Ab Publ (OTCMKTS:SVNLY)

Canadian Imperial Bank of Commerce (NYSE:CM) and Svenska Handelsbanken Ab Publ (OTCMKTS:SVNLY) are both large-cap finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, risk, institutional ownership, valuation, earnings, analyst recommendations and dividends.

Insider and Institutional Ownership

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

Profitability

This table compares Canadian Imperial Bank of Commerce and Svenska Handelsbanken Ab Publ’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Canadian Imperial Bank of Commerce	15.15%	15.69%	0.81%
Svenska Handelsbanken Ab Publ	17.61%	14.18%	0.76%

Dividends

Canadian Imperial Bank of Commerce pays an annual dividend of $3.14 per share and has a dividend yield of 2.8%. Svenska Handelsbanken Ab Publ pays an annual dividend of $0.58 per share and has a dividend yield of 8.2%. Canadian Imperial Bank of Commerce pays out 45.8% of its earnings in the form of a dividend. Svenska Handelsbanken Ab Publ pays out 81.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Canadian Imperial Bank of Commerce has raised its dividend for 14 consecutive years.

Earnings & Valuation

This table compares Canadian Imperial Bank of Commerce and Svenska Handelsbanken Ab Publ”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Canadian Imperial Bank of Commerce	$44.36 billion	2.32	$6.02 billion	$6.86	16.35
Svenska Handelsbanken Ab Publ	$21.75 billion	1.29	$2.42 billion	$0.71	9.94

Canadian Imperial Bank of Commerce has higher revenue and earnings than Svenska Handelsbanken Ab Publ. Svenska Handelsbanken Ab Publ 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.

Risk and Volatility

Canadian Imperial Bank of Commerce has a beta of 1.05, indicating that its share price is 5% more volatile than the S&P 500. Comparatively, Svenska Handelsbanken Ab Publ has a beta of 0.61, indicating that its share price is 39% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and price targets for Canadian Imperial Bank of Commerce and Svenska Handelsbanken Ab Publ, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Canadian Imperial Bank of Commerce	0	3	5	0	2.63
Svenska Handelsbanken Ab Publ	3	3	0	0	1.50

Canadian Imperial Bank of Commerce presently has a consensus price target of $107.50, indicating a potential downside of 4.15%. Given Canadian Imperial Bank of Commerce’s stronger consensus rating and higher possible upside, analysts plainly believe Canadian Imperial Bank of Commerce is more favorable than Svenska Handelsbanken Ab Publ.

Summary

Canadian Imperial Bank of Commerce beats Svenska Handelsbanken Ab Publ on 14 of the 16 factors compared between the two stocks.

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.

About Svenska Handelsbanken Ab Publ

Svenska Handelsbanken AB (publ) provides various banking products and services for private and corporate customers primarily in Sweden, the United Kingdom, Norway, the Netherlands, the United States, Luxembourg, Finland, and Poland. The company offers savings, transactions, business, currency, and investment accounts, as well as accounts for cash pool, and forestry and agriculture; mortgage and committed loans, and private loans; mutual funds; pension products; credit and debit cards; and payment and reconciliation services, as well as foreign exchange rate services. It also provides financing for investments, such as equipment, cars, computers, and other inventories, as well as vehicle and real estate financing services; green loans and advisor services; investment and other financing services; medical care, and group and health insurance products; forestry and farming banking products; and online and mobile banking services, as well as various banking services for children and young people. In addition, the company offers financial services, that includes asset management, transactional banking, corporate finance, financing, markets, trade finance, market information and research services to large corporations; cash management solutions; and various corporate banking services to small and medium-sized companies and large corporates, as well as private banking services. Svenska Handelsbanken AB (publ) was incorporated in 1871 and is headquartered in Stockholm, Sweden.