Canadian Imperial Bank of Commerce (CM) & Foreign Trade Bank of Latin America (BLX) Critical Contrast

Canadian Imperial Bank of Commerce (NYSE: CM) and Foreign Trade Bank of Latin America (NYSE:BLX) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, profitability, earnings, analyst recommendations, institutional ownership, risk and valuation.

Insider and Institutional Ownership

44.5% of Canadian Imperial Bank of Commerce shares are owned by institutional investors. Comparatively, 10.8% of Foreign Trade Bank of Latin America shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations for Canadian Imperial Bank of Commerce and Foreign Trade Bank of Latin America, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Canadian Imperial Bank of Commerce 1 4 4 0 2.33
Foreign Trade Bank of Latin America 0 1 0 0 2.00

Canadian Imperial Bank of Commerce currently has a consensus target price of $119.71, suggesting a potential upside of 35.19%. Foreign Trade Bank of Latin America has a consensus target price of $28.00, suggesting a potential upside of 3.70%. Given Canadian Imperial Bank of Commerce’s stronger consensus rating and higher possible upside, research analysts plainly believe Canadian Imperial Bank of Commerce is more favorable than Foreign Trade Bank of Latin America.

Volatility and Risk

Canadian Imperial Bank of Commerce has a beta of 1.15, indicating that its share price is 15% more volatile than the S&P 500. Comparatively, Foreign Trade Bank of Latin America has a beta of 1.6, indicating that its share price is 60% more volatile than the S&P 500.

Dividends

Canadian Imperial Bank of Commerce pays an annual dividend of $4.19 per share and has a dividend yield of 4.7%. Foreign Trade Bank of Latin America pays an annual dividend of $1.54 per share and has a dividend yield of 5.7%. Canadian Imperial Bank of Commerce pays out 47.1% of its earnings in the form of a dividend. Foreign Trade Bank of Latin America pays out 74.0% 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 2 consecutive years.

Profitability

This table compares Canadian Imperial Bank of Commerce and Foreign Trade Bank of Latin America’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Canadian Imperial Bank of Commerce 21.28% 17.55% 0.91%
Foreign Trade Bank of Latin America 30.04% 7.51% 1.26%

Valuation and Earnings

This table compares Canadian Imperial Bank of Commerce and Foreign Trade Bank of Latin America’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Canadian Imperial Bank of Commerce $16.73 billion 2.35 $3.59 billion $8.89 9.96
Foreign Trade Bank of Latin America $244.58 million 4.35 $81.99 million $2.08 12.98

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

Summary

Canadian Imperial Bank of Commerce beats Foreign Trade Bank of Latin America on 10 of the 16 factors compared between the two stocks.

Canadian Imperial Bank of Commerce Company Profile

Canadian Imperial Bank of Commerce, a diversified financial institution, provides various financial products and services to individual, small business, commercial, corporate, 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, tax free savings, and business accounts; loans, lines of credit, student lines of credit, and business and agriculture loans; fixed and variable rate, first time home buyer, and commercial mortgages; rapid and franchise financing services; and home power plan solutions. The company also provides prepaid, credit, and commercial cards; and guaranteed investment certificates, investment banking, mutual funds, structured notes, education RESPs, and disability RDSPs, as well as portfolio, business, and investment solutions. In addition, it offers government supported programs; travel and creditor insurance products; specialty services, such as established business, agriculture, and indigenous banking services, as well as banking services for professionals; and custody, corporate trust, and transfer agency services. Further, the company provides student, youth, senior, newcomers, and foreign workers banking offers, as well as banking bundles. Additionally, it offers overdraft protection, switch kit, retirement planning, precious metal purchasing, cash management, merchant, trade finance, correspondent banking, community commitment, asset management, self-directed brokerage, and online foreign exchange services, as well as mobile, online, and ATM services. The company also operates an advice center. Canadian Imperial Bank of Commerce was founded in 1867 and is headquartered in Toronto, Canada.

Foreign Trade Bank of Latin America Company Profile

Banco Latinoamericano de Comercio Exterior, S.A., a multinational bank, primarily engages in the financing of foreign trade in Latin America and the Caribbean. The company operates through two segments, Commercial and Treasury. It offers short and medium-term bilateral, collateral-backed, short and medium term trade, and pre-export financing structured loans; and discounting of notes, cross-border leasing, pre- and post-export financing, import financing, letters of credit, bank guarantees, documentary collection, irrevocable reimbursement undertakings, bankers' acceptance, vendor finance, and ECA-backed financing services. The company also provides working capital financing solutions, including short and medium-term bilateral loans, collateral-backed bilateral loans, leases, and vendor finance; structured syndicated and clubbed loans, such as acquisition financing, pre-export financing, A/B loan financing with multilateral agencies, bridge loans, and liability management; and treasury solutions comprising term deposits and private placements. It primarily serves corporations, middle-market companies, and banking and financial institutions. The company was formerly known as Banco Latinoamericano de Exportaciones, S.A. and changed its name to Banco Latinoamericano de Comercio Exterior, S.A. in June 2009. Banco Latinoamericano de Comercio Exterior, S.A. was founded in 1977 and is headquartered in Panama City, the Republic of Panama.

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