Financial Review: Lake Shore Bancorp (LSBK) & Its Peers

Lake Shore Bancorp (NASDAQ:LSBK) is one of 919 publicly-traded companies in the “Banks” industry, but how does it compare to its rivals? We will compare Lake Shore Bancorp to similar businesses based on the strength of its risk, valuation, analyst recommendations, earnings, profitability, dividends and institutional ownership.

Analyst Ratings

This is a breakdown of recent recommendations for Lake Shore Bancorp and its rivals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lake Shore Bancorp	0	0	0	1	4.00
Lake Shore Bancorp Competitors	7463	30186	27757	1457	2.35

As a group, “Banks” companies have a potential upside of 15.50%. Given Lake Shore Bancorp’s rivals higher possible upside, analysts clearly believe Lake Shore Bancorp has less favorable growth aspects than its rivals.

Risk & Volatility

Lake Shore Bancorp has a beta of 0.3, indicating that its share price is 70% less volatile than the S&P 500. Comparatively, Lake Shore Bancorp’s rivals have a beta of 0.52, indicating that their average share price is 48% less volatile than the S&P 500.

Dividends

Lake Shore Bancorp pays an annual dividend of $0.36 per share and has a dividend yield of 1.9%. Lake Shore Bancorp pays out 32.1% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 9.2% and pay out 28.9% of their earnings in the form of a dividend. Lake Shore Bancorp lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Institutional and Insider Ownership

8.7% of Lake Shore Bancorp shares are held by institutional investors. Comparatively, 47.8% of shares of all “Banks” companies are held by institutional investors. 8.4% of Lake Shore Bancorp shares are held by insiders. Comparatively, 9.8% of shares of all “Banks” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Lake Shore Bancorp	20.62%	5.84%	1.15%
Lake Shore Bancorp Competitors	15.66%	9.44%	0.93%

Earnings and Valuation

This table compares Lake Shore Bancorp and its rivals top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Lake Shore Bancorp	$39.56 million	$7.27 million	16.78
Lake Shore Bancorp Competitors	$9.95 billion	$2.42 billion	17.38

Lake Shore Bancorp’s rivals have higher revenue and earnings than Lake Shore Bancorp. Lake Shore Bancorp is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Summary

Lake Shore Bancorp rivals 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.