Northeast Bancorp (NASDAQ:NBN) & LifeStore Financial Group (OTCMKTS:LSFG) Critical Contrast

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

Profitability

This table compares LifeStore Financial Group and Northeast Bancorp’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
Northeast Bancorp	24.16%	17.34%	1.98%

Analyst Ratings

This is a breakdown of current ratings and price targets for LifeStore Financial Group and Northeast Bancorp, 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
Northeast Bancorp	0	1	2	0	2.67

Northeast Bancorp has a consensus target price of $117.50, indicating a potential downside of 0.45%. Given Northeast Bancorp’s stronger consensus rating and higher possible upside, analysts clearly believe Northeast Bancorp is more favorable than LifeStore Financial Group.

Volatility and Risk

LifeStore Financial Group has a beta of 0.4, suggesting that its share price is 60% less volatile than the S&P 500. Comparatively, Northeast Bancorp has a beta of 0.58, suggesting that its share price is 42% less volatile than the S&P 500.

Valuation & Earnings

This table compares LifeStore Financial Group and Northeast Bancorp”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
LifeStore Financial Group	$33.78 million	1.48	$5.56 million	N/A	N/A
Northeast Bancorp	$351.00 million	2.76	$83.44 million	$10.37	11.38

Northeast Bancorp has higher revenue and earnings than LifeStore Financial Group.

Dividends

LifeStore Financial Group pays an annual dividend of $0.65 per share and has a dividend yield of 1.3%. Northeast Bancorp pays an annual dividend of $0.04 per share and has a dividend yield of 0.0%. Northeast Bancorp pays out 0.4% of its earnings in the form of a dividend.

Summary

Northeast Bancorp beats LifeStore Financial Group on 10 of the 12 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 Northeast Bancorp

Northeast Bank provides banking services to individual and corporate customers in Maine. The company's deposit products include demand deposit, NOW, money market, savings, certificate of deposit, and individual retirement accounts, as well as checking accounts. Its loan portfolio comprises residential mortgage loans; multi-family and other commercial real estate loans; commercial and industrial loans, such as term loans, lines of credit and equipment, and receivables financing; consumer loans comprising mobile home and overdraft, and deposit-secured loans; and small business administration loans. In addition, the company offers telephone banking, online banking and bill payment, mobile banking, cash management, and remote deposit capture services, as well as debit and credit card, ATM, electronic transfer, and check services. Further, it provides various services, such as money market, merchant, and payroll and HR. Northeast Bank was founded in 1872 and is headquartered in Portland, Maine.