Analyzing Southern First Bancshares (NASDAQ:SFST) & Canadian Imperial Bank of Commerce (NYSE:CM)
by Tristan Rich · The Markets DailyCanadian Imperial Bank of Commerce (NYSE:CM – Get Free Report) and Southern First Bancshares (NASDAQ:SFST – Get Free Report) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, risk, profitability, earnings and valuation.
Volatility and Risk
Canadian Imperial Bank of Commerce has a beta of 1.02, indicating that its stock price is 2% more volatile than the S&P 500. Comparatively, Southern First Bancshares has a beta of 0.71, indicating that its stock price is 29% less volatile than the S&P 500.
Profitability
This table compares Canadian Imperial Bank of Commerce and Southern First Bancshares’ 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% |
| Southern First Bancshares | 16.78% | 10.18% | 0.88% |
Insider and Institutional Ownership
49.9% of Canadian Imperial Bank of Commerce shares are owned by institutional investors. Comparatively, 75.0% of Southern First Bancshares shares are owned by institutional investors. 6.9% of Southern First Bancshares shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Analyst Recommendations
This is a summary of current ratings and recommmendations for Canadian Imperial Bank of Commerce and Southern First Bancshares, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Canadian Imperial Bank of Commerce | 0 | 5 | 4 | 1 | 2.60 |
| Southern First Bancshares | 0 | 1 | 2 | 0 | 2.67 |
Canadian Imperial Bank of Commerce presently has a consensus target price of $160.00, suggesting a potential upside of 42.32%. Southern First Bancshares has a consensus target price of $64.00, suggesting a potential upside of 7.01%. Given Canadian Imperial Bank of Commerce’s higher possible upside, equities research analysts clearly believe Canadian Imperial Bank of Commerce is more favorable than Southern First Bancshares.
Earnings and Valuation
This table compares Canadian Imperial Bank of Commerce and Southern First Bancshares”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Canadian Imperial Bank of Commerce | $44.36 billion | 2.31 | $6.02 billion | $7.49 | 15.01 |
| Southern First Bancshares | $132.64 million | 4.26 | $30.37 million | $4.67 | 12.81 |
Canadian Imperial Bank of Commerce has higher revenue and earnings than Southern First Bancshares. Southern First Bancshares 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.
Summary
Canadian Imperial Bank of Commerce beats Southern First Bancshares on 9 of the 15 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 Southern First Bancshares
Southern First Bancshares, Inc. operates as the bank holding company for Southern First Bank that provides commercial, consumer, and mortgage loans to the general public in South Carolina, North Carolina, and Georgia. The company accepts various deposit products that include checking accounts, commercial checking accounts, and savings accounts, as well as other time deposits, including daily money market accounts and long-term certificates of deposit. Its loan portfolio comprises commercial real estate loans; construction real estate loans; commercial business loans for various lines of businesses, such as the manufacturing, service industry, and professional service areas; consumer real estate and home equity loans; and other consumer loans, including secured and unsecured installment loans and revolving lines of credit. In addition, the company provides other bank services, such as internet banking, cash management, safe deposit boxes, direct deposit, automatic drafts, bill payment, and mobile banking services. Southern First Bancshares, Inc. was incorporated in 1999 and is headquartered in Greenville, South Carolina.