Head-To-Head Analysis: Lake Shore Bancorp (LSBK) vs. Its Competitors

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

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	20.23%	6.53%	1.11%
Lake Shore Bancorp Competitors	12.14%	4.25%	0.85%

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 hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Volatility and Risk

Lake Shore Bancorp has a beta of 0.32, suggesting that its stock price is 68% less volatile than the S&P 500. Comparatively, Lake Shore Bancorp’s rivals have a beta of 0.46, suggesting that their average stock price is 54% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations and price targets for Lake Shore Bancorp and its rivals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lake Shore Bancorp	0	1	0	0	2.00
Lake Shore Bancorp Competitors	580	1873	935	50	2.13

As a group, “FIN – SVGS & LOAN” companies have a potential upside of 5.81%. Given Lake Shore Bancorp’s rivals stronger consensus rating and higher possible upside, analysts plainly believe Lake Shore Bancorp has less favorable growth aspects than its rivals.

Earnings & Valuation

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Lake Shore Bancorp	$29.01 million	$7.27 million	13.44
Lake Shore Bancorp Competitors	$279.20 million	$42.44 million	13.82

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.

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 26.0% 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.

Summary

Lake Shore Bancorp rivals beat Lake Shore Bancorp on 12 of the 15 factors compared.

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.