Head-To-Head Review: Lifestore Financial Group (OTCMKTS:LSFG) and Hawthorn Bancshares (NASDAQ:HWBK)

Dividends

Lifestore Financial Group pays an annual dividend of $0.60 per share and has a dividend yield of 1.3%. Hawthorn Bancshares pays an annual dividend of $0.80 per share and has a dividend yield of 2.7%. Hawthorn Bancshares pays out 29.1% of its earnings in the form of a dividend. Hawthorn Bancshares has increased its dividend for 5 consecutive years. Hawthorn Bancshares is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider and Institutional Ownership

30.7% of Hawthorn Bancshares shares are held by institutional investors. 12.2% of Lifestore Financial Group shares are held by company insiders. Comparatively, 23.4% of Hawthorn Bancshares shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Lifestore Financial Group and Hawthorn Bancshares’ 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
Hawthorn Bancshares	16.65%	13.00%	1.00%

Valuation & Earnings

This table compares Lifestore Financial Group and Hawthorn Bancshares”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lifestore Financial Group	N/A	N/A	N/A	N/A	N/A
Hawthorn Bancshares	$73.90 million	2.79	$18.26 million	$2.75	10.81

Hawthorn Bancshares has higher revenue and earnings than Lifestore Financial Group.

Volatility and Risk

Lifestore Financial Group has a beta of 0.52, suggesting that its stock price is 48% less volatile than the S&P 500. Comparatively, Hawthorn Bancshares has a beta of 0.57, suggesting that its stock price is 43% less volatile than the S&P 500.

Summary

Hawthorn Bancshares beats Lifestore Financial Group on 9 of the 10 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 Hawthorn Bancshares

Hawthorn Bancshares, Inc. operates as the bank holding company for Hawthorn Bank that provides various banking services in the United States. It accepts checking, savings, money market, individual retirement, and other time deposit accounts, as well as certificates of deposit. The company also offers commercial and industrial, single payment personal, installment, commercial and residential real estate, and consumer loans, as well as equipment, operating, and small business administration loans; and debit and credit cards. In addition, it provides trust services that include estate planning, investment, and asset management services; and cash management, safety deposit box, brokerage, and Internet banking services. Hawthorn Bancshares, Inc. was founded in 1865 and is headquartered in Jefferson City, Missouri.