Synovus Financial Corp. (NYSE: SNV) and Canadian Imperial Bank of Commerce (NYSE:CM) are both mid-cap finance companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, earnings, valuation, analyst recommendations, risk, institutional ownership and dividends.
Synovus Financial Corp. pays an annual dividend of $0.60 per share and has a dividend yield of 1.3%. Canadian Imperial Bank of Commerce pays an annual dividend of $4.14 per share and has a dividend yield of 4.6%. Synovus Financial Corp. pays out 27.1% of its earnings in the form of a dividend. Canadian Imperial Bank of Commerce pays out 49.8% 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. Synovus Financial Corp. has raised its dividend for 3 consecutive years.
This is a summary of recent ratings and price targets for Synovus Financial Corp. and Canadian Imperial Bank of Commerce, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Synovus Financial Corp.||0||9||5||0||2.36|
|Canadian Imperial Bank of Commerce||1||2||2||0||2.20|
Synovus Financial Corp. currently has a consensus target price of $43.80, indicating a potential downside of 6.11%. Canadian Imperial Bank of Commerce has a consensus target price of $103.50, indicating a potential upside of 15.42%. Given Canadian Imperial Bank of Commerce’s higher probable upside, analysts plainly believe Canadian Imperial Bank of Commerce is more favorable than Synovus Financial Corp..
This table compares Synovus Financial Corp. and Canadian Imperial Bank of Commerce’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Synovus Financial Corp.||20.68%||9.88%||0.92%|
|Canadian Imperial Bank of Commerce||22.37%||17.75%||0.84%|
Earnings & Valuation
This table compares Synovus Financial Corp. and Canadian Imperial Bank of Commerce’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Synovus Financial Corp.||$1.20 billion||4.72||$268.52 million||$2.21||21.11|
|Canadian Imperial Bank of Commerce||$12.23 billion||3.20||$3.62 billion||$8.31||10.79|
Canadian Imperial Bank of Commerce has higher revenue and earnings than Synovus Financial Corp.. Canadian Imperial Bank of Commerce is trading at a lower price-to-earnings ratio than Synovus Financial Corp., indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Synovus Financial Corp. has a beta of 1.1, indicating that its share price is 10% more volatile than the S&P 500. Comparatively, Canadian Imperial Bank of Commerce has a beta of 1.09, indicating that its share price is 9% more volatile than the S&P 500.
Institutional and Insider Ownership
77.9% of Synovus Financial Corp. shares are held by institutional investors. Comparatively, 46.4% of Canadian Imperial Bank of Commerce shares are held by institutional investors. 1.5% of Synovus Financial Corp. shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Synovus Financial Corp. beats Canadian Imperial Bank of Commerce on 10 of the 17 factors compared between the two stocks.
About Synovus Financial Corp.
Synovus Financial Corp. is a financial services company and a bank holding company. The Company provides integrated financial services, including commercial and retail banking, financial management, insurance and mortgage services, to its customers through locally branded banking divisions of its subsidiary bank, Synovus Bank (the Bank), and other offices in Georgia, Alabama, South Carolina, Florida and Tennessee. The Bank offers commercial banking services and retail banking services. The Bank’s commercial banking services include cash management, asset management, capital markets services, institutional trust services, and commercial, financial and real estate loans. Its retail banking services include mortgage, installment and other retail loans; investment and brokerage services; safe deposit services; automated banking services; automated fund transfers; Internet-based banking services, and bank credit card services, including MasterCard and Visa services.
About Canadian Imperial Bank of Commerce
Canadian Imperial Bank of Commerce (CIBC) is a global financial institution. The Company provides a range of financial products and services to approximately 11 million individual, small business, commercial, corporate and institutional clients in Canada and around the world. The Company operates through three segments: Retail and Business Banking, Wealth Management and Capital Markets. The Company’s Retail and Business Banking segment provides personal and business clients across Canada with financial advice, products and services in its banking centers or through remote channels, such as mobile advisors, telephone, online or mobile banking. The Company’s Wealth Management segment provides advice and investment solutions. The Company’s Capital Markets segment provides integrated credit and global markets products, investment banking advisory services and research to corporate, government and institutional clients around the world.
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