LifeStore Financial Group (OTCMKTS:LSFG) & Pathfinder Bancorp (NASDAQ:PBHC) Critical Survey

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Pathfinder Bancorp	9.09%	6.37%	0.53%
LifeStore Financial Group	N/A	N/A	N/A

Volatility & Risk

Pathfinder Bancorp has a beta of 0.11, meaning that its stock price is 89% less volatile than the S&P 500. Comparatively, LifeStore Financial Group has a beta of 0.48, meaning that its stock price is 52% less volatile than the S&P 500.

Insider & Institutional Ownership

26.7% of Pathfinder Bancorp shares are owned by institutional investors. 15.4% of Pathfinder Bancorp shares are owned by company insiders. Comparatively, 12.2% of LifeStore Financial Group shares are owned by company 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.

Valuation & Earnings

This table compares Pathfinder Bancorp and LifeStore Financial Group”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pathfinder Bancorp	$46.67 million	1.44	$3.38 million	$1.20	11.65
LifeStore Financial Group	$33.78 million	N/A	$5.56 million	N/A	N/A

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

Analyst Ratings

This is a breakdown of current ratings for Pathfinder Bancorp and LifeStore Financial Group, as provided by MarketBeat.com.

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

Dividends

Pathfinder Bancorp pays an annual dividend of $0.40 per share and has a dividend yield of 2.9%. LifeStore Financial Group pays an annual dividend of $0.65 per share and has a dividend yield of 1.5%. Pathfinder Bancorp pays out 33.3% of its earnings in the form of a dividend. Pathfinder Bancorp has raised its dividend for 1 consecutive years. Pathfinder Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Pathfinder Bancorp beats LifeStore Financial Group on 9 of the 12 factors compared between the two stocks.

About Pathfinder Bancorp

Pathfinder Bancorp, Inc. operates as a bank holding company for Pathfinder Bank that provides various banking and financial products and services in New York. The company's deposit products include checking, savings, and money market deposit accounts; certificates of deposit; and demand and time deposits. Its loan portfolio comprises commercial real estate, commercial, residential real estate, construction, and tax-exempt loans; home equity loans and junior liens; and consumer loans comprising automobile, recreational vehicles, and unsecured personal loans, as well as unsecured lines of credit and loans secured by deposit accounts. The company is also involved in the property, casualty, and life insurance brokerage business. It primarily serves individuals, families, small to mid-size businesses, and municipalities. The company was founded in 1859 and is headquartered in Oswego, New York.

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.