Lineage (NASDAQ:LINE) and Prologis (NYSE:PLD) Financial Survey

Lineage (NASDAQ:LINE – Get Free Report) and Prologis (NYSE:PLD – Get Free Report) are both real estate companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, earnings, valuation, profitability, risk and dividends.

Profitability

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

Analyst Ratings

This is a breakdown of current ratings and price targets for Lineage and Prologis, as provided by MarketBeat.com.

Lineage currently has a consensus price target of $43.38, suggesting a potential upside of 2.37%. Prologis has a consensus price target of $154.00, suggesting a potential upside of 6.25%. Given Prologis’ stronger consensus rating and higher possible upside, analysts plainly believe Prologis is more favorable than Lineage.

Volatility and Risk

Lineage has a beta of 0.85, meaning that its stock price is 15% less volatile than the S&P 500. Comparatively, Prologis has a beta of 1.32, meaning that its stock price is 32% more volatile than the S&P 500.

Dividends

Lineage pays an annual dividend of $2.13 per share and has a dividend yield of 5.0%. Prologis pays an annual dividend of $4.28 per share and has a dividend yield of 3.0%. Lineage pays out -343.5% of its earnings in the form of a dividend. Prologis pays out 95.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Prologis has raised its dividend for 12 consecutive years. Lineage is clearly the better dividend stock, given its higher yield and lower payout ratio.

Insider & Institutional Ownership

93.5% of Prologis shares are held by institutional investors. 71.6% of Lineage shares are held by company insiders. Comparatively, 0.5% of Prologis shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Lineage and Prologis”s top-line revenue, earnings per share (EPS) and valuation.

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

Summary

Prologis beats Lineage on 14 of the 17 factors compared between the two stocks.

About Lineage

(Get Free Report)

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.

About Prologis

(Get Free Report)

Prologis, Inc. is the global leader in logistics real estate with a focus on high-barrier, high-growth markets. At March 31, 2024, the company owned or had investments in, on a wholly owned basis or through co-investment ventures, properties and development projects expected to total approximately 1.2 billion square feet (115 million square meters) in 19 countries. Prologis leases modern logistics facilities to a diverse base of approximately 6,700 customers principally across two major categories: business-to-business and retail/online fulfillment.