Omega Healthcare Investors (NYSE:OHI) & Lineage (NASDAQ:LINE) Head-To-Head Review

Omega Healthcare Investors (NYSE:OHI) and Lineage (NASDAQ:LINE) are both large-cap finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, risk, valuation, institutional ownership, profitability, dividends and analyst recommendations.

Profitability

This table compares Omega Healthcare Investors and Lineage’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Omega Healthcare Investors	51.14%	11.86%	6.10%
Lineage	-2.72%	-1.56%	-0.76%

Dividends

Omega Healthcare Investors pays an annual dividend of $2.68 per share and has a dividend yield of 5.9%. Lineage pays an annual dividend of $2.13 per share and has a dividend yield of 4.8%. Omega Healthcare Investors pays out 129.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Lineage pays out -343.5% of its earnings in the form of a dividend.

Valuation & Earnings

This table compares Omega Healthcare Investors and Lineage”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Omega Healthcare Investors	$1.19 billion	11.36	$572.03 million	$2.07	21.94
Lineage	$5.36 billion	1.87	-$100.00 million	($0.62)	-71.02

Omega Healthcare Investors has higher earnings, but lower revenue than Lineage. Lineage is trading at a lower price-to-earnings ratio than Omega Healthcare Investors, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

65.3% of Omega Healthcare Investors shares are held by institutional investors. 1.5% of Omega Healthcare Investors shares are held by company insiders. Comparatively, 71.6% of Lineage shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent recommendations for Omega Healthcare Investors and Lineage, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Omega Healthcare Investors	1	7	5	1	2.43
Lineage	5	11	4	0	1.95

Omega Healthcare Investors currently has a consensus target price of $49.17, indicating a potential upside of 8.27%. Lineage has a consensus target price of $43.11, indicating a potential downside of 2.09%. Given Omega Healthcare Investors’ stronger consensus rating and higher probable upside, analysts plainly believe Omega Healthcare Investors is more favorable than Lineage.

Risk and Volatility

Omega Healthcare Investors has a beta of 0.58, suggesting that its share price is 42% less volatile than the S&P 500. Comparatively, Lineage has a beta of 0.87, suggesting that its share price is 13% less volatile than the S&P 500.

Summary

Omega Healthcare Investors beats Lineage on 13 of the 17 factors compared between the two stocks.

About Omega Healthcare Investors

Omega Healthcare Investors, Inc. engages in the provision of financing and capital to the long-term healthcare industry with a particular focus on skilled nursing facilities, assisted living facilities, independent living facilities, rehabilitation and acute care facilities, and medical office buildings. The company was founded on March 31, 1992 and is headquartered in Hunt Valley, MD.

About Lineage

Lineage, Inc. is the world’s largest global temperature-controlled warehouse REIT with a network of over 480 strategically located facilities totaling over 84.1 million square feet and 3.0 billion cubic feet of capacity across countries in North America, Europe, and Asia-Pacific. Coupling end-to-end supply chain solutions and technology, Lineage partners with some of the world’s largest food and beverage producers, retailers, and distributors to help increase distribution efficiency, advance sustainability, minimize supply chain waste, and, most importantly, feed the world.