Comparing LifeStore Financial Group (OTCMKTS:LSFG) and Northpointe Bancshares (NYSE:NPB)

Northpointe Bancshares (NYSE:NPB) and LifeStore Financial Group (OTCMKTS:LSFG) are both small-cap finance companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, profitability, valuation, institutional ownership, analyst recommendations, risk and dividends.

Analyst Recommendations

This is a summary of current recommendations and price targets for Northpointe Bancshares and LifeStore Financial Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Northpointe Bancshares	1	2	2	0	2.20
LifeStore Financial Group	0	0	0	0	0.00

Northpointe Bancshares currently has a consensus price target of $20.62, indicating a potential upside of 19.74%. Given Northpointe Bancshares’ stronger consensus rating and higher probable upside, equities analysts clearly believe Northpointe Bancshares is more favorable than LifeStore Financial Group.

Dividends

Northpointe Bancshares pays an annual dividend of $0.10 per share and has a dividend yield of 0.6%. LifeStore Financial Group pays an annual dividend of $0.65 per share and has a dividend yield of 1.1%. Northpointe Bancshares pays out 4.3% of its earnings in the form of a dividend.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Northpointe Bancshares	17.72%	15.10%	1.27%
LifeStore Financial Group	N/A	N/A	N/A

Valuation and Earnings

This table compares Northpointe Bancshares and LifeStore Financial Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Northpointe Bancshares	$471.18 million	1.26	$83.41 million	$2.31	7.46
LifeStore Financial Group	$33.78 million	1.76	$5.56 million	N/A	N/A

Northpointe Bancshares has higher revenue and earnings than LifeStore Financial Group.

Summary

Northpointe Bancshares beats LifeStore Financial Group on 8 of the 11 factors compared between the two stocks.

About Northpointe Bancshares

Northpointe Bancshares, Inc. operates as a bank holding company. It offers a nationwide mortgage purchase program, residential mortgage loans, digital deposit banking to retail customers and custodial deposit services. The company was founded by Charles A. Williams in 1998 and is headquartered in Grand Rapids, MI.

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.