Lake Shore Bancorp (LSBK) versus Its Rivals Financial Analysis

Lake Shore Bancorp (NASDAQ:LSBK) is one of 69 public 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 businesses based on the strength of its earnings, risk, dividends, analyst recommendations, institutional ownership, profitability and valuation.

Earnings and Valuation

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Lake Shore Bancorp	$39.56 million	$7.27 million	13.36
Lake Shore Bancorp Competitors	$261.84 million	$42.44 million	13.31

Lake Shore Bancorp’s competitors have higher revenue and earnings than Lake Shore Bancorp. Lake Shore Bancorp is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive 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 26.1% 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.

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	20.23%	6.53%	1.11%
Lake Shore Bancorp Competitors	12.20%	4.26%	0.86%

Risk & Volatility

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

Analyst Recommendations

This is a breakdown of current ratings for Lake Shore Bancorp and its competitors, 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	1876	937	50	2.13

As a group, “FIN – SVGS & LOAN” companies have a potential upside of 9.65%. Given Lake Shore Bancorp’s competitors stronger consensus rating and higher possible upside, analysts plainly believe Lake Shore Bancorp has less favorable growth aspects than its competitors.

Insider and Institutional 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. 8.4% of Lake Shore Bancorp shares are owned by insiders. Comparatively, 9.0% of shares of all “FIN – SVGS & LOAN” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

Lake Shore Bancorp competitors beat Lake Shore Bancorp on 11 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.