Financial Review: Lyons Bancorp (OTCMKTS:LYBC) and Peoples Financial Services (NASDAQ:PFIS)

Lyons Bancorp (OTCMKTS:LYBCGet Free Report) and Peoples Financial Services (NASDAQ:PFISGet Free Report) are both small-cap finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, dividends, profitability, analyst recommendations, institutional ownership and valuation.

Dividends

Lyons Bancorp pays an annual dividend of $1.60 per share and has a dividend yield of 3.9%. Peoples Financial Services pays an annual dividend of $2.47 per share and has a dividend yield of 4.5%. Lyons Bancorp pays out 36.0% of its earnings in the form of a dividend. Peoples Financial Services pays out 239.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Valuation & Earnings

This table compares Lyons Bancorp and Peoples Financial Services”s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Lyons Bancorp $70.28 million 1.95 $17.35 million $4.45 9.16
Peoples Financial Services $163.98 million 3.36 $27.38 million $1.03 53.58

Peoples Financial Services has higher revenue and earnings than Lyons Bancorp. Lyons Bancorp is trading at a lower price-to-earnings ratio than Peoples Financial Services, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Lyons Bancorp and Peoples Financial Services’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Lyons Bancorp N/A N/A N/A
Peoples Financial Services 3.00% 7.73% 0.71%

Insider & Institutional Ownership

0.3% of Lyons Bancorp shares are held by institutional investors. Comparatively, 31.7% of Peoples Financial Services shares are held by institutional investors. 4.1% of Peoples Financial Services shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Volatility & Risk

Lyons Bancorp has a beta of -0.07, meaning that its share price is 107% less volatile than the S&P 500. Comparatively, Peoples Financial Services has a beta of 0.5, meaning that its share price is 50% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Lyons Bancorp and Peoples Financial Services, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Lyons Bancorp 0 0 0 0 0.00
Peoples Financial Services 0 2 0 0 2.00

Peoples Financial Services has a consensus price target of $50.00, suggesting a potential downside of 9.40%. Given Peoples Financial Services’ stronger consensus rating and higher possible upside, analysts plainly believe Peoples Financial Services is more favorable than Lyons Bancorp.

Summary

Peoples Financial Services beats Lyons Bancorp on 13 of the 15 factors compared between the two stocks.

About Lyons Bancorp

(Get Free Report)

Lyons Bancorp Inc. operates as a financial holding company for The Lyons National Bank that provides a range of commercial and retail banking services to individual and small business customers. It offers checking accounts, savings accounts, individual retirement accounts, and certificates of deposit; commercial real estate, agricultural real estate, commercial and agricultural, and consumer instalment loans; and residential real estate loans, such as classes for 1-4 family and home equity loans, as well as consumer loans comprising recreational, auto, personal, personal line of credit, and home improvement loans; financial services, including retirement strategy, investment management, education savings, life insurance, long-term care insurance, and employer and employee benefit services. The company also provides mortgage, online and mobile banking, telephone banking, credit and debit card, online cash management, merchant, safe deposit boxes, wire transfer, traveller program, online bill pay, e-statements, money orders, and official checks services. It operates branches in Wayne, Onondaga, Yates, Ontario, Monroe, Seneca, and Cayuga counties, New York. The company was founded in 1852 and is headquartered in Lyons, New York.

About Peoples Financial Services

(Get Free Report)

Peoples Financial Services Corp. operates as the bank holding company for Peoples Security Bank and Trust Company that provides various commercial and retail banking services. The company accepts money market, negotiable order of withdrawal, savings, individual retirement, demand deposit, and certificates of deposit accounts. It also provides residential real estate, automobile, manufactured housing, personal, and home equity loans; and commercial real estate, working capital, construction, small business administration, and agricultural loans, as well as loans for equipment and other commercial needs, and mineral rights. In addition, the company offers fiduciary and investment services; investment management, IRA trustee, estate administration, living and life insurance trust, trustee under will, guardianship, custodial/IRA custodial, and corporate trust services, as well as pension and profit-sharing plans. Further, it provides wealth management products and services comprising investment portfolio management, estate and business succession planning, annuities, insurance, retirement plan, and tax planning, as well as education funding strategies; and securities, brokerage, and investor services. Additionally, the company offers small business checking and merchant money market accounts, online and telephone banking, business credit cards, merchant line of credit, and financial checkup services; and remote deposit capture, automatic clearing house transaction, cash management, automated teller machine, point of sale transaction, safe deposit box, night depository, direct deposit, and official check services. It serves business, non-profit, governmental, municipal agency, and professional customers, as well as retail customers. Peoples Financial Services Corp. was founded in 1905 and is headquartered in Scranton, Pennsylvania.

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