Lake Shore Bancorp (NASDAQ:LSBK) and Southern Banc (OTCMKTS:SRNN) are both small-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their risk, valuation, earnings, dividends, institutional ownership, profitability and analyst recommendations.

Analyst Ratings

This is a summary of current ratings and price targets for Lake Shore Bancorp and Southern Banc, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Lake Shore Bancorp 0 0 0 0 N/A
Southern Banc 0 0 0 0 N/A

Volatility & Risk

Lake Shore Bancorp has a beta of 0.06, meaning that its share price is 94% less volatile than the S&P 500. Comparatively, Southern Banc has a beta of 0.2, meaning that its share price is 80% less volatile than the S&P 500.

Valuation & Earnings

This table compares Lake Shore Bancorp and Southern Banc’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Lake Shore Bancorp $24.01 million 3.74 $4.00 million N/A N/A
Southern Banc $5.65 million 1.28 $460,000.00 N/A N/A

Lake Shore Bancorp has higher revenue and earnings than Southern Banc.

Profitability

This table compares Lake Shore Bancorp and Southern Banc’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Lake Shore Bancorp 15.05% 4.84% 0.70%
Southern Banc 8.12% 4.02% 0.47%

Insider and Institutional Ownership

11.2% of Lake Shore Bancorp shares are held by institutional investors. 4.7% of Lake Shore Bancorp shares are held by insiders. Comparatively, 22.0% of Southern Banc shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Dividends

Lake Shore Bancorp pays an annual dividend of $0.48 per share and has a dividend yield of 3.2%. Southern Banc does not pay a dividend.

Summary

Lake Shore Bancorp beats Southern Banc on 9 of the 11 factors compared between the two stocks.

Lake Shore Bancorp Company Profile

Lake Shore Bancorp, Inc. operates as the savings and loan holding company for Lake Shore Savings Bank that provides retail and commercial banking products and services. It accepts various deposit products, such as regular savings deposits, including Christmas Club, passbook, and statement savings accounts; money market savings and checking accounts; interest bearing and non-interest bearing checking accounts comprising demand deposits; health savings accounts; retirement accounts; time deposits; interest on lawyer accounts; and accounts for individuals, as well as commercial savings, checking, and money market accounts for businesses. The company's loan portfolio consists of one-to four-family residential mortgages, home equity loans, commercial real estate loans, construction loans, business installment loans, lines of credit, and other commercial loans; and consumer loans that include personal consumer loans, overdraft lines of credit, vehicle loans, secured and unsecured property improvement loans, and other secured and unsecured loans. As of February 08, 2018, it had 11 full-service branch locations in Western New York, including 5 locations in Chautauqua County and 6 locations in Erie County, New York. The company was founded in 1891 and is headquartered in Dunkirk, New York. Lake Shore Bancorp, Inc. is a subsidiary of Lake Shore, MHC.

Southern Banc Company Profile

The Southern Banc Company, Inc. operates as the holding company for The Southern Bank Company that provides various banking products and services in Alabama. Its personal banking products include checking accounts, home mortgage loans, home equity loans, auto loans, and personal loans. The company's business banking products comprise business checking accounts, cash flow management, real estate lending, and equipment financing. It also offers commercial accounts, accounts receivable management, factoring services, and online banking and ATM services. The company operates through four full service banking offices located in Gadsden, Albertville, Guntersville, and Centre, as well as through one commercial finance office located in Birmingham. The Southern Banc Company, Inc. was founded in 1936 and is based in Gadsden, Alabama.

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