Banc of California (NYSE:BANC) and Lifestore Financial Group (OTCMKTS:LSFG) Financial Analysis

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

Dividends

Banc of California pays an annual dividend of $0.40 per share and has a dividend yield of 2.5%. Lifestore Financial Group pays an annual dividend of $0.60 per share and has a dividend yield of 1.5%. Banc of California pays out -12.0% of its earnings in the form of a dividend.

Analyst Ratings

This is a summary of current recommendations and price targets for Banc of California and Lifestore Financial Group, as provided by MarketBeat.com.

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

Banc of California currently has a consensus target price of $17.20, suggesting a potential upside of 9.14%. Given Banc of California’s higher probable upside, research analysts plainly believe Banc of California is more favorable than Lifestore Financial Group.

Institutional & Insider Ownership

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

Volatility and Risk

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

Profitability

This table compares Banc of California and Lifestore Financial Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Banc of California	-20.75%	2.93%	0.24%
Lifestore Financial Group	N/A	N/A	N/A

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Banc of California	$728.96 million	3.40	-$1.90 billion	($3.33)	-4.73
Lifestore Financial Group	N/A	N/A	N/A	N/A	N/A

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

Summary

Banc of California beats Lifestore Financial Group on 9 of the 11 factors compared between the two stocks.

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.

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.