Critical Comparison: Lake Shore Bancorp (LSBK) and Its Peers

Lake Shore Bancorp (NASDAQ:LSBK) is one of 69 publicly-traded companies in the “FIN – SVGS & LOAN” industry, but how does it weigh in compared to its competitors? We will compare Lake Shore Bancorp to similar companies based on the strength of its dividends, analyst recommendations, valuation, earnings, profitability, institutional ownership and risk.

Profitability

This table compares Lake Shore Bancorp and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lake Shore Bancorp	20.23%	6.53%	1.11%
Lake Shore Bancorp Competitors	12.14%	4.24%	0.85%

Analyst Recommendations

This is a summary of recent ratings for Lake Shore Bancorp and its competitors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lake Shore Bancorp	0	1	0	0	2.00
Lake Shore Bancorp Competitors	578	1865	934	50	2.13

As a group, “FIN – SVGS & LOAN” companies have a potential upside of 4.95%. Given Lake Shore Bancorp’s competitors stronger consensus rating and higher probable upside, analysts plainly believe Lake Shore Bancorp has less favorable growth aspects than its competitors.

Dividends

Lake Shore Bancorp pays an annual dividend of $0.36 per share and has a dividend yield of 2.3%. Lake Shore Bancorp pays out 30.5% of its earnings in the form of a dividend. As a group, “FIN – SVGS & LOAN” companies pay a dividend yield of 2.5% and pay out 26.3% of their earnings in the form of a dividend. Lake Shore Bancorp lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Institutional and Insider Ownership

8.8% of Lake Shore Bancorp shares are held by institutional investors. Comparatively, 50.0% of shares of all “FIN – SVGS & LOAN” companies are held by institutional investors. 8.4% of Lake Shore Bancorp shares are held by insiders. Comparatively, 9.0% of shares of all “FIN – SVGS & LOAN” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Lake Shore Bancorp and its competitors top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Lake Shore Bancorp	$29.01 million	$7.27 million	13.54
Lake Shore Bancorp Competitors	$279.20 million	$42.61 million	14.07

Lake Shore Bancorp’s competitors have higher revenue and earnings than Lake Shore Bancorp. Lake Shore Bancorp 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.

Risk and Volatility

Lake Shore Bancorp has a beta of 0.32, meaning that its stock price is 68% less volatile than the S&P 500. Comparatively, Lake Shore Bancorp’s competitors have a beta of -0.40, meaning that their average stock price is 140% less volatile than the S&P 500.

Summary

Lake Shore Bancorp competitors beat Lake Shore Bancorp on 11 of the 15 factors compared.

Lake Shore Bancorp Company Profile

Lake Shore Bancorp, Inc. operates as a savings and loan holding company for Lake Shore Servings Bank. It offers personal services such as checking, savings, lending, banking, debit card, e-services, and online banking; and business services including deposit products, commercial loans, and business e-statements. The company was founded in 2006 and is headquartered in Dunkirk, NY.