Contrasting Comerica (CMA) & Its Competitors

Comerica (NYSE: CMA) is one of 311 publicly-traded companies in the “Banks” industry, but how does it contrast to its competitors? We will compare Comerica to related companies based on the strength of its dividends, valuation, risk, earnings, profitability, institutional ownership and analyst recommendations.

Insider and Institutional Ownership

82.0% of Comerica shares are held by institutional investors. Comparatively, 52.2% of shares of all “Banks” companies are held by institutional investors. 1.1% of Comerica shares are held by insiders. Comparatively, 10.4% of shares of all “Banks” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Comerica and its competitors top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Comerica $2.96 billion $477.00 million 19.85
Comerica Competitors $5.50 billion $827.87 million 389.06

Comerica’s competitors have higher revenue and earnings than Comerica. Comerica is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Dividends

Comerica pays an annual dividend of $1.20 per share and has a dividend yield of 1.4%. Comerica pays out 27.1% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 1.9% and pay out 34.8% of their earnings in the form of a dividend. Comerica has increased its dividend for 5 consecutive years.

Profitability

This table compares Comerica and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Comerica 24.87% 10.35% 1.09%
Comerica Competitors 18.59% 8.36% 0.93%

Analyst Ratings

This is a breakdown of recent ratings and target prices for Comerica and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Comerica 2 11 9 0 2.32
Comerica Competitors 2189 8524 8582 335 2.36

Comerica currently has a consensus target price of $82.60, indicating a potential downside of 5.86%. As a group, “Banks” companies have a potential downside of 9.85%. Given Comerica’s higher possible upside, research analysts plainly believe Comerica is more favorable than its competitors.

Risk and Volatility

Comerica has a beta of 1.51, indicating that its stock price is 51% more volatile than the S&P 500. Comparatively, Comerica’s competitors have a beta of 0.79, indicating that their average stock price is 21% less volatile than the S&P 500.

Summary

Comerica competitors beat Comerica on 8 of the 15 factors compared.

Comerica Company Profile

Comerica Incorporated is a financial services company. The Company’s principal activity is lending to and accepting deposits from businesses and individuals. The Company’s segments include the Business Bank, the Retail Bank, Wealth Management, Finance and Other. The Business Bank serves middle market businesses, multinational corporations and governmental entities by offering various products and services, including commercial loans and lines of credit, deposits, cash management, capital market products, international trade finance, letters of credit, foreign exchange management services and loan syndication services. The Retail Bank includes small business banking and personal financial services, consisting of consumer lending, consumer deposit gathering and mortgage loan origination. The Wealth Management segment offers products and services consisting of fiduciary services, private banking, retirement services, investment advisory services, investment banking and brokerage services.

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