ABN AMRO Bank (OTCMKTS:AAVMY) & Canadian Imperial Bank of Commerce (NYSE:CM) Financial Analysis

ABN AMRO Bank (OTCMKTS:AAVMY) and Canadian Imperial Bank of Commerce (NYSE:CM) are both financial services companies, but which is the better investment? We will contrast the two companies based on the strength of their risk, dividends, profitability, valuation, institutional ownership, analyst recommendations and earnings.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
ABN AMRO Bank	N/A	N/A	N/A
Canadian Imperial Bank of Commerce	9.26%	13.29%	0.66%

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ABN AMRO Bank	1	1	4	0	2.50
Canadian Imperial Bank of Commerce	1	5	3	0	2.22

ABN AMRO Bank currently has a consensus target price of $11.20, suggesting a potential downside of 23.52%. Canadian Imperial Bank of Commerce has a consensus target price of $57.30, suggesting a potential upside of 39.79%. Given Canadian Imperial Bank of Commerce’s higher probable upside, analysts clearly believe Canadian Imperial Bank of Commerce is more favorable than ABN AMRO Bank.

Insider & Institutional Ownership

43.7% of Canadian Imperial Bank of Commerce shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares ABN AMRO Bank 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
ABN AMRO Bank	N/A	N/A	N/A	N/A	N/A
Canadian Imperial Bank of Commerce	$22.82 billion	1.66	$4.83 billion	$3.67	11.17

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

Summary

Canadian Imperial Bank of Commerce beats ABN AMRO Bank on 6 of the 8 factors compared between the two stocks.

About ABN AMRO Bank

ABN AMRO Bank N.V. provides various banking products and services to retail, private, and business clients in the Netherlands and internationally. It operates through three segments: Personal & Business Banking, Wealth Management, and Corporate Banking. The company provides savings and deposits products; labelled residential mortgage products under the Florius brands; and consumer loans under the Alpha Credit Nederland, Credivance, Defam, Moneyou, and ABN AMRO brands. It also issues, promotes, manages, and processes credit cards; provides revolving credit card facilities and pension schemes, as well as consumer credit and mortgages; and life and non-life insurance products. In addition, it offers asset-based solutions, including working capital solutions, equipment leases and loans, and vendor lease services; private banking and wealth-management-related services; and derivatives and equity clearing services. ABN AMRO Bank N.V. was incorporated in 2009 and is headquartered in Amsterdam, the Netherlands.

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; and Capital Markets. The company offers checking, savings, and business accounts; mortgages; business, car, and other loans; lines of credit, student lines of credit, and agriculture loans; investment and insurance services; and credit cards, as well as mobile, online, and overdraft protection services. It also provides day-to-day banking, borrowing and credit, specialty, investing and private wealth, and international banking services; foreign exchange services; and cash management services. Canadian Imperial Bank of Commerce was founded in 1867 and is headquartered in Toronto, Canada.