BMO vs CM

For growth investors, Bank of Montreal (BMO) is the stronger pick with -0.

5% revenue growth year-over-year, versus -3. 1% for Canadian Imperial Bank of Commerce (CM). Canadian Imperial Bank of Commerce (CM) offers the better valuation at 17. 8x trailing P/E (11. 0x forward), making it the more compelling value choice. Analysts rate Bank of Montreal (BMO) a "Buy" — based on 18 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, Canadian Imperial Bank of Commerce (CM) is the cheapest at 17.

8x versus Bank of Montreal at 18. 4x. On forward P/E, Bank of Montreal is actually cheaper at 10. 9x — notably different from the trailing picture, reflecting expected earnings growth. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Canadian Imperial Bank of Commerce wins at 0. 70x versus Bank of Montreal's 1. 26x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, Canadian Imperial Bank of Commerce (CM) delivered a total return of +137.

3%, compared to +83. 2% for Bank of Montreal (BMO). Over 10 years, the gap is even starker: CM returned +262. 4% versus BMO's +207. 9%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Canadian Imperial Bank of Commerce (CM) is the lower-risk stock at 0.

70β versus Bank of Montreal's 0. 88β — meaning BMO is approximately 26% more volatile than CM relative to the S&P 500. On balance sheet safety, Bank of Montreal (BMO) carries a lower debt/equity ratio of 5% versus 6% for Canadian Imperial Bank of Commerce — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Bank of Montreal (BMO) is pulling ahead at -0.

5% versus -3. 1% for Canadian Imperial Bank of Commerce (CM). On earnings-per-share growth, the picture is similar: Bank of Montreal grew EPS 20. 3% year-over-year, compared to 17. 7% for Canadian Imperial Bank of Commerce. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Canadian Imperial Bank of Commerce (CM) is the more profitable company, earning 13.

6% net margin versus 11. 1% for Bank of Montreal — meaning it keeps 13. 6% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: CM leads at 17. 6% versus 14. 8% for BMO. At the gross margin level — before operating expenses — CM leads at 43. 0%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, Canadian Imperial Bank of Commerce (CM) is the more undervalued stock at a PEG of 0. 70x versus Bank of Montreal's 1. 26x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Bank of Montreal (BMO) trades at 10. 9x forward P/E versus 11. 0x for Canadian Imperial Bank of Commerce — 0. 1x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for CM: -5. 0% to $106. 62.

All stocks in this comparison pay dividends.

Bank of Montreal (BMO) offers the highest yield at 3. 3%, versus 2. 8% for Canadian Imperial Bank of Commerce (CM).

For long-horizon retirement investors, Canadian Imperial Bank of Commerce (CM) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.

70), 2. 8% yield, +262. 4% 10Y return). Both have compounded well over 10 years (CM: +262. 4%, BMO: +207. 9%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Financial Services sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

In terms of investment character: BMO is a mid-cap income-oriented stock; CM is a mid-cap deep-value stock. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.