FFW (OTCMKTS:FFWC) vs. Lake Shore Bancorp (OTCMKTS:LSBK) Head-To-Head Analysis

Lake Shore Bancorp (NASDAQ:LSBK) and FFW (OTCMKTS:FFWC) are both small-cap finance companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, analyst recommendations, valuation, institutional ownership, dividends, risk and profitability.

Risk and Volatility

Lake Shore Bancorp has a beta of 0.06, meaning that its share price is 94% less volatile than the S&P 500. Comparatively, FFW has a beta of 0.56, meaning that its share price is 44% less volatile than the S&P 500.

Valuation and Earnings

This table compares Lake Shore Bancorp and FFW’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Lake Shore Bancorp $24.01 million 3.66 $4.00 million N/A N/A
FFW $19.80 million 2.41 $4.34 million N/A N/A

FFW has lower revenue, but higher earnings than Lake Shore Bancorp.

Dividends

Lake Shore Bancorp pays an annual dividend of $0.48 per share and has a dividend yield of 3.3%. FFW pays an annual dividend of $0.84 per share and has a dividend yield of 2.0%. Lake Shore Bancorp has raised its dividend for 2 consecutive years. Lake Shore Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Institutional and Insider Ownership

12.1% of Lake Shore Bancorp shares are held by institutional investors. 4.7% of Lake Shore Bancorp shares are held by company insiders. Comparatively, 17.0% of FFW shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Ratings

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Lake Shore Bancorp 0 0 0 0 N/A
FFW 0 0 0 0 N/A

Profitability

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

Net Margins Return on Equity Return on Assets
Lake Shore Bancorp 14.96% 4.71% 0.69%
FFW 21.95% N/A N/A

Summary

Lake Shore Bancorp beats FFW on 8 of the 12 factors compared between the two stocks.

Lake Shore Bancorp Company Profile

Lake Shore Bancorp, Inc. operates as the savings and loan holding company for Lake Shore Savings Bank that provides retail and commercial banking products and services. It accepts various deposit products, such as regular savings deposits, including Christmas Club, passbook, and statement savings accounts; money market savings and checking accounts; interest bearing and non-interest bearing checking accounts comprising demand deposits; health savings accounts; retirement accounts; time deposits; interest on lawyer accounts; and accounts for individuals, as well as commercial savings, checking, and money market accounts for businesses. The company's loan portfolio consists of one-to four-family residential mortgages, home equity loans, commercial real estate loans, construction loans, business installment loans, lines of credit, and other commercial loans; and consumer loans that include personal consumer loans, overdraft lines of credit, vehicle loans, secured and unsecured property improvement loans, and other secured and unsecured loans. As of February 08, 2018, it had 11 full-service branch locations in Western New York, including 5 locations in Chautauqua County and 6 locations in Erie County, New York. The company was founded in 1891 and is headquartered in Dunkirk, New York. Lake Shore Bancorp, Inc. is a subsidiary of Lake Shore, MHC.

FFW Company Profile

FFW Corp. operates as a bank holding company. It engages in the provision of investment services through its wholly owned subsidiary. The company was founded in December 1992 and is headquartered in Wabash, IN.

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