Head-To-Head Analysis: LifeStore Financial Group (OTCMKTS:LSFG) versus Lake Shore Bancorp (NASDAQ:LSBK)

LifeStore Financial Group (OTCMKTS:LSFG) and Lake Shore Bancorp (NASDAQ:LSBK) are both small-cap finance companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, valuation, dividends, analyst recommendations, institutional ownership and profitability.

Dividends

LifeStore Financial Group pays an annual dividend of $0.65 per share and has a dividend yield of 1.1%. Lake Shore Bancorp pays an annual dividend of $0.36 per share and has a dividend yield of 2.2%. Lake Shore Bancorp pays out 30.5% of its earnings in the form of a dividend.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for LifeStore Financial Group and Lake Shore Bancorp, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
LifeStore Financial Group	0	0	0	0	0.00
Lake Shore Bancorp	0	1	0	0	2.00

Institutional and Insider Ownership

8.8% of Lake Shore Bancorp shares are owned by institutional investors. 12.2% of LifeStore Financial Group shares are owned by company insiders. Comparatively, 8.4% of Lake Shore Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares LifeStore Financial Group and Lake Shore Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
LifeStore Financial Group	N/A	N/A	N/A
Lake Shore Bancorp	20.23%	6.30%	1.11%

Risk and Volatility

LifeStore Financial Group has a beta of 0.44, meaning that its share price is 56% less volatile than the S&P 500. Comparatively, Lake Shore Bancorp has a beta of 0.31, meaning that its share price is 69% less volatile than the S&P 500.

Earnings & Valuation

This table compares LifeStore Financial Group and Lake Shore Bancorp”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
LifeStore Financial Group	$33.78 million	1.80	$5.56 million	N/A	N/A
Lake Shore Bancorp	$29.01 million	4.39	$7.27 million	$1.18	13.73

Lake Shore Bancorp has lower revenue, but higher earnings than LifeStore Financial Group.

Summary

Lake Shore Bancorp beats LifeStore Financial Group on 8 of the 12 factors compared between the two stocks.

About LifeStore Financial Group

LifeStore Financial Group, Inc. operates as a federally chartered thrift holding company for LifeStore Bank that provides personal and business banking products and services in North Carolina. The company offers checking, savings, and money market accounts, as well as certificates of deposit; mortgage loans, automobile loans, home equity lines of credit, commercial real estate loans, commercial construction loans, investment property loans, equipment loans, working capital loans/lines of credit, and small business administration loans; and credit cards. It also provides insurance agency products and services; investment and cash management services; and online and mobile banking services. The company was formerly known as AF Financial Group and changed its name to LifeStore Financial Group, Inc. in September 2009. LifeStore Financial Group, Inc. was founded in 1939 and is headquartered in West Jefferson, North Carolina. Lifestore Financial Group, Inc. operates as a subsidiary of AsheCo MHC, Inc.

About Lake Shore Bancorp

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.