Head-To-Head Review: Lifestore Financial Group (OTCMKTS:LSFG) & Banc of California (NYSE:BANC)

Lifestore Financial Group (OTCMKTS:LSFG) and Banc of California (NYSE:BANC) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their dividends, institutional ownership, risk, earnings, profitability, analyst recommendations and valuation.

Volatility and Risk

Lifestore Financial Group has a beta of 0.89, meaning that its stock price is 11% less volatile than the S&P 500. Comparatively, Banc of California has a beta of 1.14, meaning that its stock price is 14% more volatile than the S&P 500.

Valuation and Earnings

This table compares Lifestore Financial Group and Banc of California”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lifestore Financial Group	N/A	N/A	N/A	N/A	N/A
Banc of California	$728.96 million	3.32	-$1.90 billion	($3.33)	-4.62

Lifestore Financial Group has higher earnings, but lower revenue than Banc of California.

Profitability

This table compares Lifestore Financial Group and Banc of California’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
Banc of California	-21.99%	2.12%	0.17%

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Lifestore Financial Group and Banc of California, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lifestore Financial Group	0	0	0	0	N/A
Banc of California	0	5	5	0	2.50

Banc of California has a consensus target price of $17.20, indicating a potential upside of 10.90%. Given Banc of California’s higher possible upside, analysts clearly believe Banc of California is more favorable than Lifestore Financial Group.

Institutional and Insider Ownership

86.9% of Banc of California shares are owned by institutional investors. 12.2% of Lifestore Financial Group shares are owned by company insiders. Comparatively, 7.4% of Banc of California shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Dividends

Lifestore Financial Group pays an annual dividend of $0.60 per share and has a dividend yield of 1.5%. Banc of California pays an annual dividend of $0.40 per share and has a dividend yield of 2.6%. Banc of California pays out -12.0% of its earnings in the form of a dividend.

Summary

Banc of California beats Lifestore Financial Group on 9 of the 11 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 Banc of California

Banc of California, Inc. operates as the bank holding company for Banc of California that provides various banking products and services in California. The company offers deposit products, such as checking, savings, money market, demand, and time deposits; certificates of deposit; retirement accounts; and safe deposit boxes. It also provides real estate loans to professional developers and real estate investors for the acquisition, construction, refinancing, renovation, and on-going operation of commercial real estate properties; commercial real estate mortgage, residential real estate mortgage, and real estate construction and land loans; commercial loans and leases, such as equipment finance, other asset-based, venture capital, secured business, warehouse, and other lending services; small business administration loans; and consumer loans comprising personal, auto, and other loans, as well as home equity and revolving lines of credit. In addition, the company offers international banking, multi-state deposit, and asset and investment management services, as well as cash and treasury management services; and online, mobile, remote deposit, and telephone banking services. It serves small and middle-market businesses, venture capital firms, non-profit organizations, business owners, entrepreneurs, professionals, and high-net worth individuals. Banc of California, Inc. was founded in 1941 and is headquartered in Los Angeles, California.