Canadian Imperial Bank of Commerce (NYSE:CM) and First Republic Bank (OTCMKTS:FRCB) Critical Review

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

Valuation and Earnings

This table compares First Republic Bank and Canadian Imperial Bank of Commerce”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Republic Bank	$6.75 billion	0.00	$1.67 billion	N/A	N/A
Canadian Imperial Bank of Commerce	$26.57 billion	2.01	$5.23 billion	$5.58	10.17

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

Dividends

First Republic Bank pays an annual dividend of $1.08 per share and has a dividend yield of 19,636.4%. Canadian Imperial Bank of Commerce pays an annual dividend of $2.68 per share and has a dividend yield of 4.7%. Canadian Imperial Bank of Commerce pays out 48.0% of its earnings in the form of a dividend. Canadian Imperial Bank of Commerce has raised its dividend for 14 consecutive years.

Analyst Ratings

This is a summary of recent ratings and recommmendations for First Republic Bank and Canadian Imperial Bank of Commerce, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Republic Bank	0	0	0	0	0.00
Canadian Imperial Bank of Commerce	0	1	4	0	2.80

Canadian Imperial Bank of Commerce has a consensus price target of $92.00, suggesting a potential upside of 62.07%. 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 First Republic Bank.

Profitability

This table compares First Republic 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
First Republic Bank	N/A	N/A	N/A
Canadian Imperial Bank of Commerce	11.10%	14.01%	0.72%

Insider & Institutional Ownership

0.0% of First Republic Bank shares are held by institutional investors. Comparatively, 49.9% of Canadian Imperial Bank of Commerce shares are held by institutional investors. 0.7% of First Republic Bank shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Volatility & Risk

First Republic Bank has a beta of 1.6, suggesting that its share price is 60% more volatile than the S&P 500. Comparatively, Canadian Imperial Bank of Commerce has a beta of 1.07, suggesting that its share price is 7% more volatile than the S&P 500.

Summary

Canadian Imperial Bank of Commerce beats First Republic Bank on 11 of the 15 factors compared between the two stocks.

About First Republic Bank

As of May 1, 2023, First Republic Bank went out of business. Previously, First Republic Bank provided private banking, private business banking, and private wealth management services to clients in metropolitan areas in the United States. The company was founded in 1985 and was headquartered in San Francisco, California. First Republic Bank now trades on OTCPK.

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.