Provident Financial (NASDAQ:PROV) & LifeStore Financial Group (OTCMKTS:LSFG) Head to Head Analysis

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

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Provident Financial	$60.15 million	1.77	$6.26 million	$0.92	18.49
LifeStore Financial Group	$33.78 million	1.65	$5.56 million	N/A	N/A

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Provident Financial	10.27%	4.77%	0.50%
LifeStore Financial Group	N/A	N/A	N/A

Volatility and Risk

Provident Financial has a beta of 0.34, indicating that its stock price is 66% less volatile than the S&P 500. Comparatively, LifeStore Financial Group has a beta of 0.45, indicating that its stock price is 55% less volatile than the S&P 500.

Institutional & Insider Ownership

71.3% of Provident Financial shares are held by institutional investors. 11.5% of Provident Financial shares are held by insiders. Comparatively, 12.2% of LifeStore Financial Group shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Dividends

Provident Financial pays an annual dividend of $0.56 per share and has a dividend yield of 3.3%. LifeStore Financial Group pays an annual dividend of $0.65 per share and has a dividend yield of 1.2%. Provident Financial pays out 60.9% of its earnings in the form of a dividend.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Provident Financial and LifeStore Financial Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Provident Financial	0	3	0	0	2.00
LifeStore Financial Group	0	0	0	0	0.00

Provident Financial currently has a consensus price target of $16.00, suggesting a potential downside of 5.94%. Given Provident Financial’s stronger consensus rating and higher possible upside, research analysts plainly believe Provident Financial is more favorable than LifeStore Financial Group.

Summary

Provident Financial beats LifeStore Financial Group on 10 of the 13 factors compared between the two stocks.

About Provident Financial

Provident Financial Holdings, Inc. operates as the holding company for Provident Savings Bank, F.S.B. that provides community banking services to consumers and small to mid-sized businesses in the Inland Empire region of Southern California. The company's deposit products include checking, savings, and money market accounts, as well as time deposits; and loan portfolio consists of single-family, multi-family, commercial real estate, construction, mortgage, commercial business, and consumer loans. It also offers investment services comprising the sale of investment products, such as annuities and mutual funds; and trustee services for real estate transactions. The company operates through full-service banking offices in Riverside County and San Bernardino County. Provident Financial Holdings, Inc. was founded in 1956 and is headquartered in Riverside, California.

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.