Canadian Imperial Bank of Commerce (NYSE:CM – Get Rating) and ICICI Bank (NYSE:IBN – Get Rating) are both large-cap finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, dividends, risk, earnings, profitability and valuation.
Dividends
Canadian Imperial Bank of Commerce pays an annual dividend of $2.49 per share and has a dividend yield of 5.9%. ICICI Bank pays an annual dividend of $0.11 per share and has a dividend yield of 0.5%. Canadian Imperial Bank of Commerce pays out 63.2% of its earnings in the form of a dividend. ICICI Bank pays out 10.2% 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. ICICI Bank has raised its dividend for 2 consecutive years.
Profitability
This table compares Canadian Imperial Bank of Commerce and ICICI Bank’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Canadian Imperial Bank of Commerce | 12.75% | 14.51% | 0.72% |
| ICICI Bank | 22.23% | 15.14% | 1.67% |
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Canadian Imperial Bank of Commerce | $22.21 billion | 1.74 | $4.83 billion | $3.94 | 10.77 |
| ICICI Bank | $1,283.87 billion | 0.06 | $3.36 billion | $1.08 | 19.79 |
Canadian Imperial Bank of Commerce has higher earnings, but lower revenue than ICICI Bank. Canadian Imperial Bank of Commerce is trading at a lower price-to-earnings ratio than ICICI Bank, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Canadian Imperial Bank of Commerce has a beta of 1.01, suggesting that its share price is 1% more volatile than the S&P 500. Comparatively, ICICI Bank has a beta of 0.92, suggesting that its share price is 8% less volatile than the S&P 500.
Analyst Ratings
This is a summary of recent ratings and price targets for Canadian Imperial Bank of Commerce and ICICI Bank, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Canadian Imperial Bank of Commerce | 1 | 5 | 1 | 0 | 2.00 |
| ICICI Bank | 0 | 0 | 1 | 0 | 3.00 |
Canadian Imperial Bank of Commerce currently has a consensus target price of $74.88, suggesting a potential upside of 76.51%. Given Canadian Imperial Bank of Commerce’s higher possible upside, research analysts clearly believe Canadian Imperial Bank of Commerce is more favorable than ICICI Bank.
Insider & Institutional Ownership
44.4% of Canadian Imperial Bank of Commerce shares are owned by institutional investors. Comparatively, 15.9% of ICICI Bank shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Summary
ICICI Bank beats Canadian Imperial Bank of Commerce on 8 of the 15 factors compared between the two stocks.
About Canadian Imperial Bank of Commerce
Canadian Imperial Bank of Commerce is a financial institution, which engages in the provision of banking and wealth management services. It operates through the following segments: Canadian Personal and Business Banking, Canadian Commercial Banking and Wealth Management, U.S. Commercial Banking and Wealth Management, Capital Markets, and Corporate and Other. The Canadian Personal and Business Banking segment provides personal and business clients with financial advice, services, and solutions. The Canadian Commercial Banking and Wealth Management segment offers banking and wealth management services to middle-market companies, entrepreneurs, high-net-worth individuals, and families, as well as asset management services to institutional investors. The U.S. Commercial Banking and Wealth Management segment includes commercial banking and private wealth services across the U.S., and personal and small business banking services in four U.S. Midwestern markets. The Capital Markets segment consists of integrated global markets products and services, investment banking advisory and execution, corporate banking, and research to corporate, government and, institutional clients. The Corporate
About ICICI Bank
ICICI Bank Ltd. engages in the provision of banking and financial services, which includes retail banking, corporate banking, and treasury operations. It operates through the following segments: Retail Banking, Wholesale Banking, Treasury, Other Banking, Life Insurance, General Insurance, and Others. The Retail Banking segment includes exposures of the bank, which satisfy the four qualifying criteria of regulatory retail portfolio as stipulated by the Reserve Bank of India guidelines on the Basel III framework. The Wholesale Banking segment deals with all advances to trusts, partnership firms, companies, and statutory bodies, by the Bank which are not included in the Retail Banking segment. The Treasury segment handles the entire investment portfolio of the bank. The Other Banking segment comprises leasing operations and other items not attributable to any particular business segment of the bank. The company was founded on January 5, 1994 and is headquartered in Mumbai, India.
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