Financial Analysis: First Capital (NASDAQ:FCAP) vs. LifeStore Financial Group (OTCMKTS:LSFG)

LifeStore Financial Group (OTCMKTS:LSFG) and First Capital (NASDAQ:FCAP) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, risk, earnings, valuation, profitability, analyst recommendations and dividends.

Volatility and Risk

LifeStore Financial Group has a beta of 0.45, suggesting that its stock price is 55% less volatile than the S&P 500. Comparatively, First Capital has a beta of 0.6, suggesting that its stock price is 40% less volatile than the S&P 500.

Dividends

LifeStore Financial Group pays an annual dividend of $0.65 per share and has a dividend yield of 1.3%. First Capital pays an annual dividend of $1.24 per share and has a dividend yield of 2.4%. First Capital pays out 25.3% of its earnings in the form of a dividend. First Capital has increased its dividend for 2 consecutive years. First Capital is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Earnings & Valuation

This table compares LifeStore Financial Group and First Capital”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
LifeStore Financial Group	$33.78 million	N/A	$5.56 million	N/A	N/A
First Capital	$65.31 million	2.69	$16.37 million	$4.90	10.69

First Capital has higher revenue and earnings than LifeStore Financial Group.

Profitability

This table compares LifeStore Financial Group and First Capital’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
First Capital	25.06%	12.95%	1.34%

Analyst Ratings

This is a summary of recent ratings and target prices for LifeStore Financial Group and First Capital, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
LifeStore Financial Group	0	0	0	0	0.00
First Capital	0	1	0	0	2.00

Insider and Institutional Ownership

11.7% of First Capital shares are owned by institutional investors. 12.2% of LifeStore Financial Group shares are owned by insiders. Comparatively, 4.0% of First Capital shares 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.

Summary

First Capital 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 First Capital

First Capital, Inc. operates as the bank holding company for First Harrison Bank that provides various banking services to individuals and business customers. The company offers various deposit instruments, including non-interest-bearing checking accounts, negotiable order of withdrawal accounts, money market accounts, regular savings accounts, certificates of deposit, and retirement savings plans. It also provides residential mortgage loans, construction loans for residential and commercial properties, and commercial real estate loans, as well as commercial business loans. In addition, the company originates mortgage loans for sale in the secondary market and sells non-deposit investment products; and offers various secured or guaranteed consumer loans comprising automobile and truck loans, home equity loans, home improvement loans, boat loans, mobile home loans, credit cards and other personal loans, and loans secured by savings deposits, as well as unsecured consumer loans. First Capital, Inc. was founded in 1891 and is based in Corydon, Indiana.