Head-To-Head Contrast: Lake Shore Bancorp (LSBK) & The Competition

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

Profitability

This table compares Lake Shore Bancorp and its rivals’ 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	12.14%	4.26%	0.85%

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

Earnings and Valuation

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Lake Shore Bancorp	$39.56 million	$7.27 million	13.43
Lake Shore Bancorp Competitors	$279.39 million	$42.44 million	13.83

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

Volatility & Risk

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

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 rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Analyst Recommendations

This is a breakdown of current ratings for Lake Shore Bancorp and its rivals, 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	579	1872	935	50	2.13

As a group, “FIN – SVGS & LOAN” companies have a potential upside of 5.62%. Given Lake Shore Bancorp’s rivals stronger consensus rating and higher probable upside, analysts clearly believe Lake Shore Bancorp has less favorable growth aspects than its rivals.

Summary

Lake Shore Bancorp rivals beat Lake Shore Bancorp on 12 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.