Contrasting LifeStore Financial Group (OTCMKTS:LSFG) and Capitol Federal Financial (NASDAQ:CFFN)

Capitol Federal Financial (NASDAQ:CFFN) and LifeStore Financial Group (OTCMKTS:LSFG) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, profitability, analyst recommendations, earnings and risk.

Dividends

Capitol Federal Financial pays an annual dividend of $0.34 per share and has a dividend yield of 4.8%. LifeStore Financial Group pays an annual dividend of $0.65 per share and has a dividend yield of 1.4%. Capitol Federal Financial pays out 65.4% of its earnings in the form of a dividend.

Risk and Volatility

Capitol Federal Financial has a beta of 0.69, meaning that its stock price is 31% less volatile than the S&P 500. Comparatively, LifeStore Financial Group has a beta of 0.48, meaning that its stock price is 52% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Capitol Federal Financial and LifeStore Financial Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Capitol Federal Financial	0	3	0	0	2.00
LifeStore Financial Group	0	0	0	0	0.00

Capitol Federal Financial currently has a consensus target price of $7.00, suggesting a potential downside of 1.75%. Given Capitol Federal Financial’s stronger consensus rating and higher probable upside, research analysts plainly believe Capitol Federal Financial is more favorable than LifeStore Financial Group.

Valuation and Earnings

This table compares Capitol Federal Financial and LifeStore Financial Group”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Capitol Federal Financial	$420.24 million	2.23	$68.03 million	$0.52	13.70
LifeStore Financial Group	$33.78 million	N/A	$5.56 million	N/A	N/A

Capitol Federal Financial has higher revenue and earnings than LifeStore Financial Group.

Institutional and Insider Ownership

88.5% of Capitol Federal Financial shares are owned by institutional investors. 3.2% of Capitol Federal Financial shares are owned by company insiders. Comparatively, 12.2% of LifeStore Financial Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Capitol Federal Financial	16.19%	6.54%	0.70%
LifeStore Financial Group	N/A	N/A	N/A

Summary

Capitol Federal Financial beats LifeStore Financial Group on 10 of the 12 factors compared between the two stocks.

About Capitol Federal Financial

Capitol Federal Financial, Inc. operates as the holding company for Capitol Federal Savings Bank that provides various retail banking products and services in the United States. The company accepts a range of deposit products, including savings accounts, money market accounts, interest-bearing and non-interest-bearing checking accounts, and certificates of deposit. It also provides various loan products, such as one- to four-family residential real estate loans, commercial real estate, commercial and industrial, construction loans, and small business loans, as well as consumer loans, which include home equity loans and lines of credit, home improvement loans, vehicle loans, and loans secured by savings deposits. In addition, the company offers mobile, telephone, and online banking services, as well as bill payment services; credit cards; mortgage loan; operates a call center; and invests in various securities. The company serves the metropolitan areas of Topeka, Wichita, Lawrence, Manhattan, Emporia, and Salina, Kansas, and a portion of the metropolitan area of greater Kansas City. Capitol Federal Financial, Inc. was founded in 1893 and is headquartered in Topeka, Kansas.

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.