Canadian Imperial Bank of Commerce (OTCMKTS: SCGLY) and Societe Generale (OTCMKTS:SCGLY) are both large-cap finance companies, but which is the better business? We will contrast the two companies based on the strength of their valuation, risk, dividends, analyst recommendations, profitability, institutional ownership and earnings.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Canadian Imperial Bank of Commerce and Societe Generale, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Canadian Imperial Bank of Commerce 1 3 5 0 2.44
Societe Generale 1 1 1 0 2.00

Canadian Imperial Bank of Commerce presently has a consensus price target of $121.14, suggesting a potential upside of 28.51%. Given Canadian Imperial Bank of Commerce’s stronger consensus rating and higher possible upside, research analysts clearly believe Canadian Imperial Bank of Commerce is more favorable than Societe Generale.

Dividends

Canadian Imperial Bank of Commerce pays an annual dividend of $4.11 per share and has a dividend yield of 4.4%. Societe Generale pays an annual dividend of $0.42 per share and has a dividend yield of 4.9%. Canadian Imperial Bank of Commerce pays out 46.2% of its earnings in the form of a dividend. Societe Generale pays out 36.8% 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. Canadian Imperial Bank of Commerce has increased its dividend for 2 consecutive years. Societe Generale is clearly the better dividend stock, given its higher yield and lower payout ratio.

Earnings and Valuation

This table compares Canadian Imperial Bank of Commerce and Societe Generale’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Canadian Imperial Bank of Commerce $16.73 billion 2.50 $3.59 billion $8.89 10.60
Societe Generale $27.06 billion 1.27 $3.17 billion $1.14 7.46

Canadian Imperial Bank of Commerce has higher earnings, but lower revenue than Societe Generale. Societe Generale 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 Canadian Imperial Bank of Commerce and Societe Generale’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Canadian Imperial Bank of Commerce 21.27% 17.77% 0.94%
Societe Generale 11.90% 10.08% 0.50%

Volatility & Risk

Canadian Imperial Bank of Commerce has a beta of 1.2, meaning that its stock price is 20% more volatile than the S&P 500. Comparatively, Societe Generale has a beta of 1.16, meaning that its stock price is 16% more volatile than the S&P 500.

Institutional & Insider Ownership

46.0% of Canadian Imperial Bank of Commerce shares are owned by institutional investors. Comparatively, 0.6% of Societe Generale shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

Canadian Imperial Bank of Commerce beats Societe Generale on 13 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 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.

About Societe Generale

Société Générale Société anonyme provides financial services in Europe and internationally. It operates through three segments: French Retail Banking, International Retail Banking & Financial Services, and Global Banking and Investor Solutions. The company offers retail banking services to individual customers, professionals, and corporate and non-profit clients under the Societe Generale, Crédit du Nord, and Boursorama brands; and international retail banking and consumer credit services to individual and corporate customers in Europe, Russia, the Mediterranean Basin, and Sub-Saharan Africa. It also provides life, retirement savings scheme, personal protection, group retirement, dependence, annuity, auto and home, personal accident, school, individual personal protection, non-life, and other insurance products; vehicle leasing and fleet management services; and vendor and equipment finance services. In addition, the company assists corporates, financial institutions, public sector institutions, and family offices in terms of investments, strategic advisory, capital raising, and capital structure optimization; and offers structured finance, and investment and risk management solutions. Further, it provides access to market through solutions equities, fixed income and currencies, commodities, and alternative investments; private banking services, including asset allocation, portfolio management, funds, markets, and wealth management solutions to high net worth individuals; and asset management solutions. Additionally, the company offers securities services, such as clearing, custody and trustee, liquidity management, fund administration and asset servicing, fund distribution, and global issuer services. Société Générale Société anonyme was founded in 1864 and is based in Paris, France.

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