Analyzing Lake Shore Bancorp (LSBK) and The Competition

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

Valuation & Earnings

This table compares Lake Shore Bancorp and its peers top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Lake Shore Bancorp	$39.56 million	$7.27 million	14.80
Lake Shore Bancorp Competitors	$270.78 million	$42.61 million	38.56

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

Profitability

This table compares Lake Shore Bancorp and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lake Shore Bancorp	18.38%	6.26%	1.00%
Lake Shore Bancorp Competitors	11.78%	3.94%	0.81%

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. 4.1% of Lake Shore Bancorp shares are owned by insiders. Comparatively, 9.1% of shares of all “FIN – SVGS & LOAN” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

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 34.0% 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 27.4% of their earnings in the form of a dividend. Lake Shore Bancorp lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Volatility and Risk

Lake Shore Bancorp has a beta of 0.31, meaning that its stock price is 69% less volatile than the S&P 500. Comparatively, Lake Shore Bancorp’s peers have a beta of 0.48, meaning that their average stock price is 52% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Lake Shore Bancorp and its peers, 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	575	1845	920	49	2.13

As a group, “FIN – SVGS & LOAN” companies have a potential upside of 3.27%. Given Lake Shore Bancorp’s peers stronger consensus rating and higher possible upside, analysts clearly believe Lake Shore Bancorp has less favorable growth aspects than its peers.

Summary

Lake Shore Bancorp peers beat Lake Shore Bancorp on 12 of the 15 factors compared.

Lake Shore Bancorp Company Profile

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.