West Bancorporation (NASDAQ:WTBA) versus LifeStore Financial Group (OTCMKTS:LSFG) Head-To-Head Analysis

West Bancorporation (NASDAQ:WTBA) and LifeStore Financial Group (OTCMKTS:LSFG) are both small-cap finance companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, valuation, profitability, risk, dividends, earnings and institutional ownership.

Risk & Volatility

West Bancorporation has a beta of 0.75, indicating that its stock price is 25% less volatile than the S&P 500. Comparatively, LifeStore Financial Group has a beta of 0.45, indicating that its stock price is 55% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
West Bancorporation	17.30%	14.88%	0.95%
LifeStore Financial Group	N/A	N/A	N/A

Dividends

West Bancorporation pays an annual dividend of $1.00 per share and has a dividend yield of 4.3%. LifeStore Financial Group pays an annual dividend of $0.65 per share and has a dividend yield of 1.2%. West Bancorporation pays out 48.5% of its earnings in the form of a dividend.

Earnings & Valuation

This table compares West Bancorporation 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
West Bancorporation	$202.45 million	1.96	$32.56 million	$2.06	11.30
LifeStore Financial Group	$33.78 million	1.65	$5.56 million	N/A	N/A

West Bancorporation has higher revenue and earnings than LifeStore Financial Group.

Insider & Institutional Ownership

44.3% of West Bancorporation shares are held by institutional investors. 4.6% of West Bancorporation shares are held by company insiders. Comparatively, 12.2% of LifeStore Financial Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and target prices for West Bancorporation and LifeStore Financial Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
West Bancorporation	0	3	1	0	2.25
LifeStore Financial Group	0	0	0	0	0.00

West Bancorporation currently has a consensus target price of $24.75, suggesting a potential upside of 6.36%. Given West Bancorporation’s stronger consensus rating and higher possible upside, equities analysts plainly believe West Bancorporation is more favorable than LifeStore Financial Group.

Summary

West Bancorporation beats LifeStore Financial Group on 12 of the 14 factors compared between the two stocks.

About West Bancorporation

West Bancorporation, Inc. operates as the financial holding company provides community banking and trust services to individuals and small- to medium-sized businesses in the United States. It offers deposit services, including checking, savings, and money market accounts, as well as time certificates of deposit. The company also provides loan products comprising commercial real estate loans, construction and land development loans, commercial lines of credit, and commercial term loans; consumer loans, including loans extended to individuals for household, family, and other personal expenditures not secured by real estate; and 1-4 family residential mortgages and home equity loans. In addition, it offers online and mobile banking, treasury management services including cash management, client-generated automated clearing house transactions, remote deposit, and fraud protection services; merchant credit card processing and corporate credit cards; and administration of estates, conservatorships, personal trusts, and agency accounts. The company was founded in 1893 and is headquartered in West Des Moines, Iowa.

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.