Lake Shore Bancorp (LSBK) and Its Competitors Financial Review

Lake Shore Bancorp (NASDAQ:LSBK) is one of 920 public companies in the “Banks” industry, but how does it compare to its peers? We will compare Lake Shore Bancorp to related companies based on the strength of its analyst recommendations, profitability, institutional ownership, dividends, earnings, risk and valuation.

Analyst Ratings

This is a summary of recent recommendations and price targets for Lake Shore Bancorp and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lake Shore Bancorp	0	0	0	1	4.00
Lake Shore Bancorp Competitors	7449	30142	27691	1450	2.35

As a group, “Banks” companies have a potential upside of 17.35%. Given Lake Shore Bancorp’s peers higher probable upside, analysts plainly believe Lake Shore Bancorp has less favorable growth aspects than its peers.

Valuation & Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Lake Shore Bancorp	$39.56 million	$7.27 million	16.65
Lake Shore Bancorp Competitors	$37.78 billion	$2.41 billion	19.02

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	20.62%	5.84%	1.15%
Lake Shore Bancorp Competitors	15.48%	9.50%	0.93%

Risk & Volatility

Lake Shore Bancorp has a beta of 0.3, indicating that its share price is 70% less volatile than the S&P 500. Comparatively, Lake Shore Bancorp’s peers have a beta of 0.60, indicating that their average share price is 40% less volatile than the S&P 500.

Institutional & Insider Ownership

8.7% of Lake Shore Bancorp shares are owned by institutional investors. Comparatively, 47.9% of shares of all “Banks” companies are owned by institutional investors. 8.4% of Lake Shore Bancorp shares are owned by company insiders. Comparatively, 9.8% of shares of all “Banks” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments 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 1.9%. Lake Shore Bancorp pays out 32.1% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 9.5% and pay out 28.9% 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.

Summary

Lake Shore Bancorp peers beat Lake Shore Bancorp on 11 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.