Banco Latinoamericano de Comercio Exterior (NYSE:BLX – Get Free Report) and Lake Shore Bancorp (NASDAQ:LSBK – Get Free Report) are both finance companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, valuation, dividends, profitability, analyst recommendations, institutional ownership and risk.
Dividends
Banco Latinoamericano de Comercio Exterior pays an annual dividend of $2.75 per share and has a dividend yield of 4.9%. Lake Shore Bancorp pays an annual dividend of $0.36 per share and has a dividend yield of 2.1%. Banco Latinoamericano de Comercio Exterior pays out 45.4% of its earnings in the form of a dividend. Lake Shore Bancorp pays out 31.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Banco Latinoamericano de Comercio Exterior has increased its dividend for 2 consecutive years. Banco Latinoamericano de Comercio Exterior is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Earnings & Valuation
This table compares Banco Latinoamericano de Comercio Exterior and Lake Shore Bancorp”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Banco Latinoamericano de Comercio Exterior | $329.77 million | 6.28 | $226.88 million | $6.06 | 9.18 |
| Lake Shore Bancorp | $39.56 million | 3.45 | $7.27 million | $1.13 | 15.38 |
Banco Latinoamericano de Comercio Exterior has higher revenue and earnings than Lake Shore Bancorp. Banco Latinoamericano de Comercio Exterior is trading at a lower price-to-earnings ratio than Lake Shore Bancorp, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
19.5% of Banco Latinoamericano de Comercio Exterior shares are held by institutional investors. Comparatively, 8.7% of Lake Shore Bancorp shares are held by institutional investors. 0.2% of Banco Latinoamericano de Comercio Exterior shares are held by insiders. Comparatively, 8.4% of Lake Shore Bancorp shares are held 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.
Profitability
This table compares Banco Latinoamericano de Comercio Exterior and Lake Shore Bancorp’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Banco Latinoamericano de Comercio Exterior | 27.77% | 13.77% | 1.75% |
| Lake Shore Bancorp | 20.74% | 5.91% | 1.15% |
Risk and Volatility
Banco Latinoamericano de Comercio Exterior has a beta of 0.78, meaning that its stock price is 22% less volatile than the S&P 500. Comparatively, Lake Shore Bancorp has a beta of 0.29, meaning that its stock price is 71% less volatile than the S&P 500.
Analyst Ratings
This is a summary of current ratings and price targets for Banco Latinoamericano de Comercio Exterior and Lake Shore Bancorp, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Banco Latinoamericano de Comercio Exterior | 0 | 0 | 0 | 1 | 4.00 |
| Lake Shore Bancorp | 0 | 1 | 0 | 0 | 2.00 |
Summary
Banco Latinoamericano de Comercio Exterior beats Lake Shore Bancorp on 13 of the 16 factors compared between the two stocks.
About Banco Latinoamericano de Comercio Exterior
Banco Latinoamericano de Comercio Exterior, S. A., a multinational bank, primarily engages in the financing of foreign trade in Latin America and the Caribbean. The company operates in two segments, Commercial and Treasury. It offers bilateral loans; structured loans including syndicated and clubbed, such as acquisition and pre-export financing, A/B loan financing, bridge loans, and liability management; and project financing. The company also provides letter of credit comprising import and export letters of credit, and credit discounting and financing, as well as usance payable at sight; stand-by services; bank guarantees, including first demand and local guarantees; import and export documentary collection; irrevocable reimbursement undertaking; and canal tolls. In addition, it offers liquidity and investment solutions, such as time deposits, DDA accounts, Yankee certificate of deposits, and EMTN private placement services, as well as supply chain finance services. The company primarily serves financial institutions, corporations, and sovereigns and state-owned entities. Banco Latinoamericano de Comercio Exterior, S. A.was formerly known as Banco Latinoamericano de Exportaciones, S.A. and changed its name to Banco Latinoamericano de Comercio Exterior, S. A. in June 2009. The company was founded in 1975 and is headquartered in Panama City, the Republic of Panama.
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.
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