Reviewing Southern Missouri Bancorp (NASDAQ:SMBC) and LifeStore Financial Group (OTCMKTS:LSFG)

Southern Missouri Bancorp (NASDAQ:SMBC) and LifeStore Financial Group (OTCMKTS:LSFG) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, analyst recommendations, valuation, institutional ownership, risk, earnings and dividends.

Profitability

This table compares Southern Missouri Bancorp and LifeStore Financial Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Southern Missouri Bancorp	20.80%	11.92%	1.30%
LifeStore Financial Group	N/A	N/A	N/A

Valuation and Earnings

This table compares Southern Missouri Bancorp and LifeStore Financial Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Southern Missouri Bancorp	$305.35 million	2.38	$58.58 million	$5.78	11.33
LifeStore Financial Group	$33.78 million	N/A	$5.56 million	N/A	N/A

Southern Missouri Bancorp has higher revenue and earnings than LifeStore Financial Group.

Insider & Institutional Ownership

49.5% of Southern Missouri Bancorp shares are held by institutional investors. 15.8% of Southern Missouri Bancorp shares are held by company insiders. Comparatively, 12.2% of LifeStore Financial Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Dividends

Southern Missouri Bancorp pays an annual dividend of $1.00 per share and has a dividend yield of 1.5%. LifeStore Financial Group pays an annual dividend of $0.65 per share and has a dividend yield of 1.3%. Southern Missouri Bancorp pays out 17.3% of its earnings in the form of a dividend. Southern Missouri Bancorp has increased its dividend for 13 consecutive years. Southern Missouri Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Southern Missouri Bancorp and LifeStore Financial Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Southern Missouri Bancorp	0	2	2	0	2.50
LifeStore Financial Group	0	0	0	0	0.00

Southern Missouri Bancorp presently has a consensus target price of $68.33, suggesting a potential upside of 4.34%. Given Southern Missouri Bancorp’s stronger consensus rating and higher probable upside, analysts clearly believe Southern Missouri Bancorp is more favorable than LifeStore Financial Group.

Volatility and Risk

Southern Missouri Bancorp has a beta of 0.99, suggesting that its stock price is 1% less volatile than the S&P 500. Comparatively, LifeStore Financial Group has a beta of 0.45, suggesting that its stock price is 55% less volatile than the S&P 500.

Summary

Southern Missouri Bancorp beats LifeStore Financial Group on 13 of the 14 factors compared between the two stocks.

About Southern Missouri Bancorp

Southern Missouri Bancorp, Inc. operates as the bank holding company for Southern Bank that provides banking and financial services to individuals and corporate customers in the United States. The company offers deposits products, including interest-bearing and noninterest-bearing transaction accounts, saving accounts, certificates of deposit, retirement savings plans, and money market deposit accounts. It also provides loans, such as residential mortgage, commercial real estate, construction, and commercial business loans; and consumer loans comprising home equity, direct and indirect automobile loans, second mortgages, mobile home loans, and loans secured by deposits. In addition, the company offers fiduciary and investment management services; commercial and consumer insurance; online and mobile banking services; and debit or credit cards. The company was founded in 1887 and is headquartered in Poplar Bluff, Missouri.

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.