Head to Head Comparison: Canadian Imperial Bank of Commerce (NYSE:CM) and Inter & Co, Inc. (NASDAQ:INTR)

Inter & Co, Inc. (NASDAQ:INTR) and Canadian Imperial Bank of Commerce (NYSE:CM) are both business services companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, risk, analyst recommendations, profitability, valuation and dividends.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Inter & Co, Inc. and Canadian Imperial Bank of Commerce, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Inter & Co, Inc.	0	0	4	0	3.00
Canadian Imperial Bank of Commerce	1	3	5	0	2.44

Inter & Co, Inc. currently has a consensus price target of $6.70, suggesting a potential downside of 0.59%. Canadian Imperial Bank of Commerce has a consensus price target of $67.00, suggesting a potential upside of 36.60%. Given Canadian Imperial Bank of Commerce’s higher possible upside, analysts plainly believe Canadian Imperial Bank of Commerce is more favorable than Inter & Co, Inc..

Volatility & Risk

Inter & Co, Inc. has a beta of 1.5, suggesting that its stock price is 50% more volatile than the S&P 500. Comparatively, Canadian Imperial Bank of Commerce has a beta of 1.06, suggesting that its stock price is 6% more volatile than the S&P 500.

Institutional & Insider Ownership

22.9% of Inter & Co, Inc. shares are owned by institutional investors. Comparatively, 49.9% of Canadian Imperial Bank of Commerce shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Dividends

Inter & Co, Inc. pays an annual dividend of $0.03 per share and has a dividend yield of 0.4%. Canadian Imperial Bank of Commerce pays an annual dividend of $2.64 per share and has a dividend yield of 5.4%. Inter & Co, Inc. pays out 13.0% of its earnings in the form of a dividend. Canadian Imperial Bank of Commerce pays out 54.3% 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 13 consecutive years. Canadian Imperial Bank of Commerce is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Inter & Co, Inc. and Canadian Imperial Bank of Commerce’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Inter & Co, Inc.	7.38%	6.16%	0.83%
Canadian Imperial Bank of Commerce	10.46%	13.06%	0.66%

Earnings and Valuation

This table compares Inter & Co, Inc. and Canadian Imperial Bank of Commerce’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Inter & Co, Inc.	$5.13 billion	0.57	$60.56 million	$0.23	29.30
Canadian Imperial Bank of Commerce	$41.16 billion	1.12	$3.70 billion	$4.86	10.09

Canadian Imperial Bank of Commerce has higher revenue and earnings than Inter & Co, Inc.. Canadian Imperial Bank of Commerce is trading at a lower price-to-earnings ratio than Inter & Co, Inc., indicating that it is currently the more affordable of the two stocks.

Summary

Canadian Imperial Bank of Commerce beats Inter & Co, Inc. on 11 of the 16 factors compared between the two stocks.

About Inter & Co, Inc.

Inter & Co, Inc., through its subsidiaries, engages in the banking and spending, investments, insurance brokerage businesses. The company's Banking & Spending segment offers banking products and services, including checking accounts, cards, deposits, loans and advances, and other services. It also provides debt collection, foreign exchange, and financial services, as well as global account digital solution. Its investments segments offers acquisition, sale and custody of securities; structure and distributes securities in the capital market; and operated and manages fund portfolios and other assets. The company's Insurance Brokerage segment provides warranties, life, property and automobile insurance, pension, and consortium products. In addition, it offers inter shop and commerce plus services. Inter & Co, Inc. was founded in 1994 and is based in Belo Horizonte, Brazil.

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.