Analyzing Comerica (CMA) and The Competition

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

Earnings & Valuation

This table compares Comerica and its competitors revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Comerica $2.96 billion $477.00 million 18.95
Comerica Competitors $5.50 billion $827.87 million 378.25

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.

Volatility and Risk

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

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 2.0% and pay out 34.9% of their earnings in the form of a dividend. Comerica has raised its dividend for 5 consecutive years.

Insider & 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 company insiders. Comparatively, 10.4% of shares of all “Banks” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current recommendations for Comerica and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Comerica 2 12 9 0 2.30
Comerica Competitors 2177 8443 8505 333 2.36

Comerica presently has a consensus price target of $81.25, suggesting a potential downside of 2.99%. As a group, “Banks” companies have a potential downside of 5.57%. Given Comerica’s higher possible upside, equities research analysts plainly believe Comerica is more favorable than its competitors.

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 18.39% 8.27% 0.93%

Summary

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

About Comerica

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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