Quick verdict: BMO vs CM in 2026

Overall, CM (Canadian Imperial Bank of Commerce) holds a slight edge in this BMO vs CM stock comparison for 2026, outperforming Bank of Montreal on several key profitability and valuation metrics as detailed in our side-by-side analysis. While BMO demonstrates a comparatively stronger momentum with less negative revenue growth, making it the growth leader, CM clearly stands out as the margin leader with superior net and EBITDA margins. For investors evaluating potential upside, BMO shows a significantly higher discounted cash flow (DCF) upside, suggesting deep underlying value, whereas CM is favored by analysts for its positive price target upside, making it the analysts’ pick for immediate potential gains. This is not investment advice.

BMO vs CM: key metrics side by side

Full side-by-side comparison of BMO and CM across valuation, profitability, growth and analyst sentiment. Data updated 2026-04-02.

BMO vs CM valuation comparison

When considering BMO vs CM valuation, investors will find distinct characteristics. Canadian Imperial Bank of Commerce (CM) appears cheaper on a trailing price-to-earnings (P/E) basis, with a P/E ratio of 13.2x compared to Bank of Montreal’s (BMO) higher P/E of 14.88x. This suggests that the market is currently valuing CM’s earnings slightly less expensively than BMO’s. However, the picture changes when looking at other valuation metrics, particularly the price-to-book (P/B) ratio, where BMO holds an advantage at 1.57x versus CM’s 1.89x, indicating BMO’s assets are valued more modestly by the market in relation to their book value.

Perhaps the most compelling aspect of the BMO vs CM valuation lies in their discounted cash flow (DCF) analyses. BMO presents a substantial DCF upside of +227.8%, implying a significant undervaluation according to this fundamental model. In contrast, CM’s DCF upside is +54.2%, which, while still positive and notable, is considerably lower than BMO’s. For value investors prioritizing deep intrinsic value based on future cash flows, BMO’s DCF figure certainly makes a strong case for being the cheaper option, despite its higher P/E ratio. CM offers a more modest but still attractive DCF upside, coupled with a lower P/E, which might appeal to those seeking a more conventional ‘value’ play in the financial sector for 2026.

BMO vs CM growth comparison

In the BMO vs CM growth comparison for 2026, Bank of Montreal (BMO) demonstrates stronger momentum, reporting a revenue growth rate of -0.5% year-over-year. While still negative, this represents a significantly more resilient performance compared to Canadian Imperial Bank of Commerce (CM), which experienced a revenue decline of -3.1% year-over-year. This indicates that BMO has managed to mitigate headwinds more effectively or has found avenues to stabilize its top-line performance to a greater degree than CM in the recent period. Despite the overall challenging environment for revenue growth in the financial services sector, BMO’s ability to limit its decline positions it as the relative growth leader between the two.

Although specific forward estimates were not provided, the current TTM revenue growth figures offer a clear snapshot of recent operational momentum. BMO’s less pronounced revenue contraction suggests better underlying business performance or strategic initiatives that are paying off. This relative strength in growth could translate into more favorable market perception and potentially better future performance, assuming the trend continues. Investors focused on growth potential, even in a contractionary phase, would likely view BMO’s -0.5% as more encouraging than CM’s -3.1% for the period, highlighting BMO’s comparative edge in the BMO vs CM earnings growth comparison.

BMO vs CM profitability

Examining BMO vs CM profitability, Canadian Imperial Bank of Commerce (CM) clearly stands out with superior margins. CM boasts a net margin of 17.63%, significantly higher than BMO’s 11.77%. This indicates that CM is more efficient at converting its revenue into net income, retaining a larger percentage as profit after all expenses, including taxes, are accounted for. Similarly, CM’s EBITDA margin of 23.98% surpasses BMO’s 18.04%, further emphasizing CM’s operational efficiency and ability to generate stronger core earnings from its business activities. These robust margins suggest CM has better cost control or more profitable business segments compared to BMO.

When it comes to free cash flow (FCF) generation, BMO takes the lead. BMO reports a positive FCF yield of 1.71%, indicating that the company is effectively generating cash from its operations after accounting for capital expenditures. In contrast, CM has a negative FCF yield of -0.74%, suggesting that its operations are consuming cash. While both companies have ‘N/A%’ for Return on Equity (ROE), BMO’s positive FCF yield implies it generates more usable cash for debt reduction, dividends, or reinvestment, which is a critical aspect of financial health. Therefore, while CM leads in traditional profit margins, BMO demonstrates superior free cash flow generation, which is a key measure for which company generates more cash for shareholders.

Analyst ratings: BMO vs CM

In terms of analyst sentiment, the BMO vs CM analyst ratings and recommendations reveal a preference for Bank of Montreal (BMO), despite its less favorable price target. Out of 18 analysts covering BMO, a substantial 44.4% recommend a “Buy” rating, leading to a consensus of “Buy” for the stock. However, their collective price target for BMO is set at $92, which implies a significant downside of -32.9% from its current price of $137.04. This creates a divergence where analysts express fundamental optimism through their buy ratings but project a lower future stock price, which can be perplexing for investors.

Conversely, Canadian Imperial Bank of Commerce (CM) receives a more cautious outlook from analysts. Out of 15 analysts, only 26.7% recommend a “Buy,” resulting in a consensus of “Hold” for CM. Despite the lower percentage of buy ratings, CM’s consensus price target of $106.62 suggests a positive upside of +10.8% from its current price of $96.23. This indicates that while fewer analysts are outright bullish on CM, those who cover it see a clearer path to near-term capital appreciation. Therefore, when considering the analyst consensus, BMO is generally preferred in terms of overall sentiment and “Buy” recommendations, even though CM offers a positive price target upside according to their forecasts, making CM the winner in price target upside.

Should I buy BMO or CM stock in 2026?

Deciding whether should I buy BMO or CM stock in 2026 depends heavily on an investor’s specific objectives and risk tolerance. For growth-oriented investors, BMO might present a more appealing option. Despite a slight revenue contraction, BMO’s year-over-year revenue growth of -0.5% is significantly better than CM’s -3.1%. This suggests BMO has stronger underlying momentum or a more resilient business model in the current economic climate, offering a comparative advantage for those prioritizing top-line stability and potential for future recovery in growth metrics.

For value investors comparing BMO vs CM fundamentals and valuation, the choice becomes more nuanced. CM appears cheaper on a P/E basis (13.2x vs BMO’s 14.88x), which is a traditional indicator of value. However, BMO’s lower P/B ratio (1.57x vs CM’s 1.89x) and, more strikingly, its massive DCF upside of +227.8% (compared to CM’s +54.2%) suggest a deeper potential for undervaluation based on intrinsic value. This indicates that BMO could offer a more substantial return if it eventually trades closer to its calculated fair value, making it a compelling option for long-term value plays, even with a higher P/E today.

Regarding income, both BMO and CM currently offer an identical and very low dividend yield of 0.03%. This means that neither stock stands out as a superior choice for income investors based solely on their current dividend payout rates. Therefore, investors prioritizing dividends as a primary factor will find little to differentiate between the two Canadian banks at this moment. Ultimately, the decision should align with your investment strategy, weighing BMO’s potential deep value and relative growth resilience against CM’s lower P/E and superior profitability margins. This is not investment advice; always conduct your own thorough research.

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FAQ: BMO vs CM