Flushing Financial (NASDAQ:FFIC) vs. Lake Shore Bancorp (NASDAQ:LSBK) Head-To-Head Analysis

Flushing Financial (NASDAQ:FFIC) and Lake Shore Bancorp (NASDAQ:LSBK) are both small-cap finance companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, valuation, institutional ownership, risk, profitability, dividends and analyst recommendations.

Dividends

Flushing Financial pays an annual dividend of $0.88 per share and has a dividend yield of 5.7%. Lake Shore Bancorp pays an annual dividend of $0.36 per share and has a dividend yield of 2.1%. Flushing Financial pays out 88.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Lake Shore Bancorp pays out 30.5% of its earnings in the form of a dividend.

Volatility and Risk

Flushing Financial has a beta of 0.74, meaning that its stock price is 26% less volatile than the S&P 500. Comparatively, Lake Shore Bancorp has a beta of 0.28, meaning that its stock price is 72% less volatile than the S&P 500.

Earnings and Valuation

This table compares Flushing Financial and Lake Shore Bancorp”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Flushing Financial	$489.63 million	1.07	$18.88 million	$1.00	15.48
Lake Shore Bancorp	$39.56 million	3.38	$7.27 million	$1.18	14.41

Flushing Financial has higher revenue and earnings than Lake Shore Bancorp. Lake Shore Bancorp is trading at a lower price-to-earnings ratio than Flushing Financial, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Flushing Financial and Lake Shore Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Flushing Financial	7.15%	6.25%	0.50%
Lake Shore Bancorp	20.23%	6.30%	1.11%

Analyst Ratings

This is a breakdown of current ratings for Flushing Financial and Lake Shore Bancorp, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Flushing Financial	0	3	1	0	2.25
Lake Shore Bancorp	0	1	0	0	2.00

Flushing Financial currently has a consensus price target of $16.80, suggesting a potential upside of 8.49%. Given Flushing Financial’s stronger consensus rating and higher probable upside, equities analysts clearly believe Flushing Financial is more favorable than Lake Shore Bancorp.

Insider & Institutional Ownership

67.1% of Flushing Financial shares are owned by institutional investors. Comparatively, 8.7% of Lake Shore Bancorp shares are owned by institutional investors. 5.7% of Flushing Financial shares are owned by company insiders. Comparatively, 8.4% of Lake Shore Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

Flushing Financial beats Lake Shore Bancorp on 9 of the 16 factors compared between the two stocks.

About Flushing Financial

Flushing Financial Corporation operates as the bank holding company for Flushing Bank that provides banking products and services primarily to consumers, businesses, and governmental units. It offers various deposit products, including checking and savings accounts, money market accounts, non-interest bearing demand accounts, NOW accounts, and certificates of deposit. The company also provides mortgage loans secured by multi-family residential, commercial real estate, one-to-four family mixed-use property, one-to-four family residential property, and commercial business loans; construction loans; small business administration loans and other small business loans; mortgage loan surrogates, such as mortgage-backed securities; and consumer loans, including overdraft lines of credit, as well as the United States government securities, corporate fixed-income securities, and other marketable securities. It operates full-service banking offices in Queens, Nassau, Suffolk, Kings, and New York counties, New York; and an internet branch under the iGObanking and BankPurely brands. Flushing Financial Corporation was founded in 1929 and is based in Uniondale, New York.

About Lake Shore Bancorp

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.