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The best comparison that comes to mind for me is Audi. Audi's S range competes the M-Performance cars, while Audi's RS line up is better positioned to compete with the (performance) range topping M cars.
Historically over the past 20 years or so this has applied nicely between the manufacturers, and it still applies today. The M760Li is slotted against the Audi S8, for example.
By the way, BMW has been sticking an M in front of a model designation for a long time. In fact, that's how the M cars came to be. The E12 M535i was the precursor to the M5, and the M635CSi was sold here as the M6.
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2012 BMW 135i Space Grey Metallic M-Sport DCT Dinan S2
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