Head-To-Head Review: LifeStore Financial Group (OTCMKTS:LSFG) vs. Provident Financial (NASDAQ:PROV)

LifeStore Financial Group (OTCMKTS:LSFG) and Provident Financial (NASDAQ:PROV) are both small-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, earnings, risk, valuation, analyst recommendations, profitability and institutional ownership.

Analyst Ratings

This is a breakdown of recent ratings and price targets for LifeStore Financial Group and Provident Financial, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
LifeStore Financial Group	0	0	0	0	0.00
Provident Financial	0	3	0	0	2.00

Provident Financial has a consensus target price of $16.00, indicating a potential downside of 6.19%. Given Provident Financial’s stronger consensus rating and higher possible upside, analysts plainly believe Provident Financial is more favorable than LifeStore Financial Group.

Dividends

LifeStore Financial Group pays an annual dividend of $0.65 per share and has a dividend yield of 1.2%. Provident Financial pays an annual dividend of $0.56 per share and has a dividend yield of 3.3%. Provident Financial pays out 60.9% of its earnings in the form of a dividend.

Institutional and Insider Ownership

71.3% of Provident Financial shares are owned by institutional investors. 12.2% of LifeStore Financial Group shares are owned by insiders. Comparatively, 11.5% of Provident Financial shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
LifeStore Financial Group	N/A	N/A	N/A
Provident Financial	10.27%	4.76%	0.49%

Volatility & Risk

LifeStore Financial Group has a beta of 0.45, indicating that its stock price is 55% less volatile than the S&P 500. Comparatively, Provident Financial has a beta of 0.34, indicating that its stock price is 66% less volatile than the S&P 500.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
LifeStore Financial Group	$33.78 million	1.65	$5.56 million	N/A	N/A
Provident Financial	$60.15 million	1.77	$6.26 million	$0.92	18.54

Provident Financial has higher revenue and earnings than LifeStore Financial Group.

Summary

Provident Financial beats LifeStore Financial Group on 10 of the 13 factors compared between the two stocks.

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.

About Provident Financial

Provident Financial Holdings, Inc. operates as the holding company for Provident Savings Bank, F.S.B. that provides community banking services to consumers and small to mid-sized businesses in the Inland Empire region of Southern California. The company's deposit products include checking, savings, and money market accounts, as well as time deposits; and loan portfolio consists of single-family, multi-family, commercial real estate, construction, mortgage, commercial business, and consumer loans. It also offers investment services comprising the sale of investment products, such as annuities and mutual funds; and trustee services for real estate transactions. The company operates through full-service banking offices in Riverside County and San Bernardino County. Provident Financial Holdings, Inc. was founded in 1956 and is headquartered in Riverside, California.