Analyzing Lineage (LINE) and Its Competitors

Lineage (NASDAQ:LINE) is one of 50 publicly-traded companies in the “Industrial REITs” industry, but how does it contrast to its competitors? We will compare Lineage to similar businesses based on the strength of its valuation, dividends, profitability, risk, analyst recommendations, institutional ownership and earnings.

Profitability

This table compares Lineage and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lineage	-3.15%	-1.85%	-0.89%
Lineage Competitors	37.85%	5.72%	2.66%

Valuation and Earnings

This table compares Lineage and its competitors gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Lineage	$5.37 billion	-$100.00 million	-55.15
Lineage Competitors	$1.03 billion	$263.98 million	56.44

Lineage has higher revenue, but lower earnings than its competitors. Lineage is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Analyst Recommendations

This is a summary of recent ratings for Lineage and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lineage	3	9	5	0	2.12
Lineage Competitors	419	2302	2551	75	2.43

Lineage presently has a consensus target price of $41.93, suggesting a potential upside of 5.60%. As a group, “Industrial REITs” companies have a potential upside of 46.59%. Given Lineage’s competitors stronger consensus rating and higher probable upside, analysts plainly believe Lineage has less favorable growth aspects than its competitors.

Risk and Volatility

Lineage has a beta of 0.79, suggesting that its share price is 21% less volatile than the S&P 500. Comparatively, Lineage’s competitors have a beta of 1.04, suggesting that their average share price is 4% more volatile than the S&P 500.

Dividends

Lineage pays an annual dividend of $2.13 per share and has a dividend yield of 5.4%. Lineage pays out -295.8% of its earnings in the form of a dividend. As a group, “Industrial REITs” companies pay a dividend yield of 4.5% and pay out 103.3% of their earnings in the form of a dividend. Lineage is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.

Insider & Institutional Ownership

61.8% of shares of all “Industrial REITs” companies are held by institutional investors. 71.6% of Lineage shares are held by company insiders. Comparatively, 5.6% of shares of all “Industrial REITs” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Lineage competitors beat Lineage on 11 of the 15 factors compared.

Lineage Company Profile

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.