Analyzing Lake Shore Bancorp (LSBK) and Its Rivals

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

Valuation & Earnings

This table compares Lake Shore Bancorp and its competitors revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Lake Shore Bancorp	$39.56 million	$7.27 million	14.95
Lake Shore Bancorp Competitors	$259.43 million	$42.61 million	38.66

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

Analyst Recommendations

This is a summary of current ratings and target prices for Lake Shore Bancorp and its competitors, as reported 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	575	1849	921	49	2.13

As a group, “FIN – SVGS & LOAN” companies have a potential upside of 2.77%. Given Lake Shore Bancorp’s competitors stronger consensus rating and higher probable upside, analysts clearly believe Lake Shore Bancorp has less favorable growth aspects than its competitors.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Lake Shore Bancorp	18.38%	6.26%	1.00%
Lake Shore Bancorp Competitors	11.79%	3.94%	0.81%

Volatility and Risk

Lake Shore Bancorp has a beta of 0.31, suggesting that its share price is 69% less volatile than the S&P 500. Comparatively, Lake Shore Bancorp’s competitors have a beta of -0.41, suggesting that their average share price is 141% less volatile than the S&P 500.

Institutional & Insider Ownership

8.8% of Lake Shore Bancorp shares are owned by institutional investors. Comparatively, 50.0% of shares of all “FIN – SVGS & LOAN” companies are owned by institutional investors. 4.1% of Lake Shore Bancorp shares are owned by company insiders. Comparatively, 8.9% of shares of all “FIN – SVGS & LOAN” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

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 34.0% 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 27.6% of their earnings in the form of a dividend. Lake Shore Bancorp lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Summary

Lake Shore Bancorp competitors 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.