Canadian Imperial Bank of Commerce (NYSE:CM) versus First United (NASDAQ:FUNC) Head-To-Head Comparison

Canadian Imperial Bank of Commerce (NYSE:CM) and First United (NASDAQ:FUNC) are both finance companies, but which is the better business? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, risk, dividends and earnings.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Canadian Imperial Bank of Commerce	16.09%	17.02%	0.87%
First United	19.99%	13.66%	1.37%

Valuation & Earnings

This table compares Canadian Imperial Bank of Commerce and First United”s top-line 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	$44.36 billion	2.33	$6.02 billion	$7.49	15.22
First United	$121.42 million	2.44	$24.51 million	$3.90	11.78

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

Dividends

Canadian Imperial Bank of Commerce pays an annual dividend of $3.09 per share and has a dividend yield of 2.7%. First United pays an annual dividend of $1.12 per share and has a dividend yield of 2.4%. Canadian Imperial Bank of Commerce pays out 41.3% of its earnings in the form of a dividend. First United pays out 28.7% 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 14 consecutive years and First United has increased its dividend for 6 consecutive years. Canadian Imperial Bank of Commerce is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a breakdown of current ratings for Canadian Imperial Bank of Commerce and First United, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Canadian Imperial Bank of Commerce	0	5	4	1	2.60
First United	0	0	4	0	3.00

Canadian Imperial Bank of Commerce presently has a consensus price target of $160.00, suggesting a potential upside of 40.32%. First United has a consensus price target of $49.50, suggesting a potential upside of 7.77%. Given Canadian Imperial Bank of Commerce’s higher possible upside, analysts plainly believe Canadian Imperial Bank of Commerce is more favorable than First United.

Volatility & Risk

Canadian Imperial Bank of Commerce has a beta of 1.02, suggesting that its stock price is 2% more volatile than the S&P 500. Comparatively, First United has a beta of 0.52, suggesting that its stock price is 48% less volatile than the S&P 500.

Insider and Institutional Ownership

49.9% of Canadian Imperial Bank of Commerce shares are held by institutional investors. Comparatively, 33.3% of First United shares are held by institutional investors. 8.1% of First United shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

Canadian Imperial Bank of Commerce beats First United on 11 of the 17 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 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.

About First United

First United Corporation operates as the bank holding company for First United Bank & Trust that provides various retail and commercial banking services to businesses and individuals. It offers various deposit products, which includes checking, savings, money market deposit, and regular and individual retirement accounts (IRAs), as well as certificates of deposit. The company loan portfolio includes commercial loans secured by real estate, commercial equipment, vehicles, or other assets of the borrower; commercial real estate loans for residential and commercial development, agricultural purpose properties, and service industry buildings, such as restaurants and motels, retail buildings, and general purpose business space; residential mortgage loans; home equity lines of credit; residential real estate construction loans; and indirect and direct auto loans, student loans, and other secured and unsecured lines of credit and term loans. It also offers access to multi-million-dollar certificates of deposit and the Intrafi cash service, including multi-million-dollar savings and demand deposits to municipalities, businesses, and consumers; and treasury management, cash sweep, and various checking services. In addition, the company provides trust services, which includes personal trust, investment agency accounts, charitable trusts, retirement accounts, including IRA roll-overs, 401(k) accounts and defined benefit plans, estate administration, and estate planning; and insurance products, brokerage services, and safe deposit and night depository facilities. First United Corporation was founded in 1900 and is headquartered in Oakland, Maryland.