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

Insider & Institutional Ownership

8.2% of Lake Shore Bancorp shares are owned by institutional investors. Comparatively, 15.1% of CBM Bancorp shares are owned by institutional investors. 4.7% of Lake Shore Bancorp shares are owned by insiders. Comparatively, 6.0% of CBM Bancorp shares are owned by 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.

Analyst Recommendations

This is a summary of current ratings for Lake Shore Bancorp and CBM Bancorp, as reported by MarketBeat.com.

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

Volatility and Risk

Lake Shore Bancorp has a beta of 0.62, meaning that its stock price is 38% less volatile than the S&P 500. Comparatively, CBM Bancorp has a beta of 0.51, meaning that its stock price is 49% less volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Lake Shore Bancorp 14.38% 4.76% 0.66%
CBM Bancorp 9.42% 1.50% 0.41%

Earnings & Valuation

This table compares Lake Shore Bancorp and CBM Bancorp’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Lake Shore Bancorp $26.76 million 2.77 $4.09 million N/A N/A
CBM Bancorp $9.63 million 4.81 $910,000.00 N/A N/A

Lake Shore Bancorp has higher revenue and earnings than CBM Bancorp.

Summary

Lake Shore Bancorp beats CBM Bancorp on 6 of the 10 factors compared between the two stocks.

About Lake Shore Bancorp

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.

About CBM Bancorp

CBM Bancorp, Inc. operates as a bank holding company for Chesapeake Bank of Maryland. Its deposit products include non-interest bearing and interest-bearing demand deposits, time deposits, money market deposits, and certificates of deposit, as well as savings and individual retirement accounts. The company's loan portfolio comprises one-to four-family residential real estate loans, nonresidential real estate loans, construction and land development loans, home equity loans and lines of credit, commercial business loans, and consumer loans. It also invests in various investment securities. The company operates through a main office located in Baltimore County, Maryland; and three branch offices located in Arbutus, Bel Air, and Pasadena, Maryland. CBM Bancorp, Inc. was founded in 1913 and is headquartered in Baltimore, Maryland.

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