Comerica (CMA) & The Competition Financial Survey

Comerica (NYSE: CMA) is one of 313 publicly-traded 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, dividends, risk, analyst recommendations, earnings, profitability and institutional ownership.

Analyst Recommendations

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Comerica 2 11 9 0 2.32
Comerica Competitors 2182 8487 8573 333 2.36

Comerica currently has a consensus price target of $81.25, indicating a potential downside of 4.74%. As a group, “Banks” companies have a potential downside of 6.66%. Given Comerica’s higher probable upside, equities research analysts clearly believe Comerica is more favorable than its competitors.

Institutional & Insider 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 hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Risk & Volatility

Comerica has a beta of 1.51, meaning that its stock price is 51% more volatile than the S&P 500. Comparatively, Comerica’s competitors have a beta of 0.78, meaning that their average stock price is 22% 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 1.9% and pay out 34.6% of their earnings in the form of a dividend. Comerica has raised 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 18.47% 8.30% 0.93%

Valuation and Earnings

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

Gross Revenue Net Income Price/Earnings Ratio
Comerica $2.96 billion $477.00 million 19.30
Comerica Competitors $5.50 billion $827.87 million 386.56

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.

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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