Canadian Imperial Bank of Commerce (NYSE:CM) and Bank Hapoalim (OTCMKTS:BKHYY) Financial Review

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

Analyst Recommendations

This is a summary of current ratings and target prices for Bank Hapoalim and Canadian Imperial Bank of Commerce, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bank Hapoalim	0	1	0	0	2.00
Canadian Imperial Bank of Commerce	0	2	4	0	2.67

Canadian Imperial Bank of Commerce has a consensus target price of $107.50, suggesting a potential upside of 33.17%. Given Canadian Imperial Bank of Commerce’s stronger consensus rating and higher probable upside, analysts clearly believe Canadian Imperial Bank of Commerce is more favorable than Bank Hapoalim.

Valuation and Earnings

This table compares Bank Hapoalim and Canadian Imperial Bank of Commerce”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bank Hapoalim	$10.95 billion	2.34	$2.08 billion	$8.71	11.17
Canadian Imperial Bank of Commerce	$47.09 billion	1.59	$5.23 billion	$5.92	13.64

Canadian Imperial Bank of Commerce has higher revenue and earnings than Bank Hapoalim. Bank Hapoalim 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.

Institutional and Insider Ownership

49.9% of Canadian Imperial Bank of Commerce shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Risk & Volatility

Bank Hapoalim has a beta of 1.11, suggesting that its stock price is 11% more volatile than the S&P 500. Comparatively, Canadian Imperial Bank of Commerce has a beta of 1.03, suggesting that its stock price is 3% more volatile than the S&P 500.

Dividends

Bank Hapoalim pays an annual dividend of $4.18 per share and has a dividend yield of 4.3%. Canadian Imperial Bank of Commerce pays an annual dividend of $2.82 per share and has a dividend yield of 3.5%. Bank Hapoalim pays out 48.0% of its earnings in the form of a dividend. Canadian Imperial Bank of Commerce pays out 47.6% 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 14 consecutive years.

Profitability

This table compares Bank Hapoalim and Canadian Imperial Bank of Commerce’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bank Hapoalim	20.12%	14.21%	1.16%
Canadian Imperial Bank of Commerce	12.94%	14.67%	0.76%

Summary

Canadian Imperial Bank of Commerce beats Bank Hapoalim on 10 of the 16 factors compared between the two stocks.

About Bank Hapoalim

Bank Hapoalim B.M., together with its subsidiaries, provides various banking and financial products and services in Israel and internationally. It operates through Household, Private Banking, Small businesses and micro businesses, Mid-sized businesses, Large businesses, Institutional entities, and Financial management segments. The company offers account-management services, lending for various purposes, deposits, and savings plans, and capital-market service; housing loans; research and advisory services; and pension advisory and retirement planning services. It also provides products and services for the expansion of a business, advanced digital services, and a service center specializing in businesses; credit for routine operations and investment financing, guarantees, letters of credit, foreign trade, and transactions in financial and derivative instruments, as well as investment services in various channels, such as foreign currency, shekels, and securities. In addition, the company offers financial services, including foreign-trade financing, financing of working capital, financing of assets overseas, complex financing transactions, syndication, and credit-risk transfers; and financing of construction projects, granting credit to customers, and issuing guarantees to buyers of homes. Further, it provides managers of mutual funds, managers of investment portfolios, and managers of provident funds, study funds, and pension funds; trading activities; underwriting services; and brokerage and custody services. The company serves households, private-banking customers, foreign residents, small businesses, financial-asset managers, middle-market business clients, and large corporations. Bank Hapoalim B.M. was founded in 1921 and is based in Tel Aviv, Israel.

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.