Head to Head Review: West Bancorporation (NASDAQ:WTBA) and LifeStore Financial Group (OTCMKTS:LSFG)

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

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
LifeStore Financial Group	0	0	0	0	0.00
West Bancorporation	0	3	1	0	2.25

West Bancorporation has a consensus price target of $24.75, indicating a potential upside of 4.65%. Given West Bancorporation’s stronger consensus rating and higher probable upside, analysts clearly believe West Bancorporation is more favorable than LifeStore Financial Group.

Risk & Volatility

LifeStore Financial Group has a beta of 0.45, suggesting that its stock price is 55% less volatile than the S&P 500. Comparatively, West Bancorporation has a beta of 0.75, suggesting that its stock price is 25% less volatile than the S&P 500.

Institutional and Insider Ownership

44.3% of West Bancorporation shares are owned by institutional investors. 12.2% of LifeStore Financial Group shares are owned by company insiders. Comparatively, 4.6% of West Bancorporation shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Dividends

LifeStore Financial Group pays an annual dividend of $0.65 per share and has a dividend yield of 1.2%. West Bancorporation pays an annual dividend of $1.00 per share and has a dividend yield of 4.2%. West Bancorporation pays out 48.5% of its earnings in the form of a dividend.

Valuation & Earnings

This table compares LifeStore Financial Group and West Bancorporation”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
LifeStore Financial Group	$33.78 million	1.65	$5.56 million	N/A	N/A
West Bancorporation	$202.45 million	1.99	$32.56 million	$2.06	11.48

West Bancorporation has higher revenue and earnings than LifeStore Financial Group.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
LifeStore Financial Group	N/A	N/A	N/A
West Bancorporation	17.30%	14.88%	0.95%

Summary

West Bancorporation beats LifeStore Financial Group on 12 of the 14 factors compared between the two stocks.

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.

About West Bancorporation

West Bancorporation, Inc. operates as the financial holding company provides community banking and trust services to individuals and small- to medium-sized businesses in the United States. It offers deposit services, including checking, savings, and money market accounts, as well as time certificates of deposit. The company also provides loan products comprising commercial real estate loans, construction and land development loans, commercial lines of credit, and commercial term loans; consumer loans, including loans extended to individuals for household, family, and other personal expenditures not secured by real estate; and 1-4 family residential mortgages and home equity loans. In addition, it offers online and mobile banking, treasury management services including cash management, client-generated automated clearing house transactions, remote deposit, and fraud protection services; merchant credit card processing and corporate credit cards; and administration of estates, conservatorships, personal trusts, and agency accounts. The company was founded in 1893 and is headquartered in West Des Moines, Iowa.