Provident Financial Services (NYSE:PFS) and LifeStore Financial Group (OTCMKTS:LSFG) Critical Survey

Provident Financial Services (NYSE:PFS) and LifeStore Financial Group (OTCMKTS:LSFG) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, profitability, institutional ownership, earnings, dividends, risk and analyst recommendations.

Analyst Recommendations

This is a summary of current ratings and target prices for Provident Financial Services and LifeStore Financial Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Provident Financial Services	0	3	2	1	2.67
LifeStore Financial Group	0	0	0	0	0.00

Provident Financial Services presently has a consensus target price of $23.70, suggesting a potential upside of 3.22%. Given Provident Financial Services’ stronger consensus rating and higher probable upside, analysts clearly believe Provident Financial Services is more favorable than LifeStore Financial Group.

Profitability

This table compares Provident Financial Services and LifeStore Financial Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Provident Financial Services	21.06%	10.69%	1.19%
LifeStore Financial Group	N/A	N/A	N/A

Institutional and Insider Ownership

72.0% of Provident Financial Services shares are owned by institutional investors. 3.1% of Provident Financial Services shares are owned by insiders. Comparatively, 12.2% of LifeStore Financial Group shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Dividends

Provident Financial Services pays an annual dividend of $0.96 per share and has a dividend yield of 4.2%. LifeStore Financial Group pays an annual dividend of $0.65 per share and has a dividend yield of 1.3%. Provident Financial Services pays out 43.0% of its earnings in the form of a dividend.

Volatility and Risk

Provident Financial Services has a beta of 0.86, suggesting that its share price is 14% less volatile than the S&P 500. Comparatively, LifeStore Financial Group has a beta of 0.45, suggesting that its share price is 55% less volatile than the S&P 500.

Valuation and Earnings

This table compares Provident Financial Services 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
Provident Financial Services	$1.38 billion	2.17	$291.16 million	$2.23	10.30
LifeStore Financial Group	$33.78 million	N/A	$5.56 million	N/A	N/A

Provident Financial Services has higher revenue and earnings than LifeStore Financial Group.

Summary

Provident Financial Services beats LifeStore Financial Group on 12 of the 14 factors compared between the two stocks.

About Provident Financial Services

Provident Financial Services, Inc. operates as the bank holding company for Provident Bank that provides various banking products and services to individuals, families, and businesses in the United States. Its deposit products include savings, checking, interest-bearing checking, money market deposit, and certificate of deposit accounts, as well as IRA products. The company's loan portfolio comprises commercial real estate loans that are secured by properties, such as multi-family apartment buildings, office buildings, retail and industrial properties, and office buildings; commercial business loans; fixed-rate and adjustable-rate mortgage loans collateralized by one- to four-family residential real estate properties; commercial construction loans; and consumer loans consisting of home equity loans, home equity lines of credit, personal loans and unsecured lines of credit, and auto and recreational vehicle loans. It also offers cash management, remote deposit capture, payroll origination, escrow account management, and online and mobile banking services; and business credit cards. In addition, the company provides wealth management services comprising investment management, trust and estate administration, financial planning, and tax compliance and planning. Further, it sells insurance and investment products, including annuities; operates as a real estate investment trust for acquiring mortgage loans and other real estate related assets; and manages and sells real estate properties acquired through foreclosure. The company was founded in 1839 and is headquartered in Jersey City, New Jersey.

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.