Reviewing Lineage (NASDAQ:LINE) and Modiv Industrial (NYSE:MDV)

Lineage (NASDAQ:LINE) and Modiv Industrial (NYSE:MDV) are both real estate companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, dividends, earnings, risk, analyst recommendations, valuation and institutional ownership.

Analyst Ratings

This is a summary of current recommendations and price targets for Lineage and Modiv Industrial, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lineage	3	9	5	0	2.12
Modiv Industrial	0	6	0	0	2.00

Lineage currently has a consensus price target of $44.07, indicating a potential upside of 12.27%. Modiv Industrial has a consensus price target of $18.50, indicating a potential upside of 2.49%. Given Lineage’s stronger consensus rating and higher probable upside, analysts plainly believe Lineage is more favorable than Modiv Industrial.

Institutional & Insider Ownership

8.2% of Modiv Industrial shares are owned by institutional investors. 71.6% of Lineage shares are owned by insiders. Comparatively, 2.8% of Modiv Industrial shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Risk and Volatility

Lineage has a beta of 0.84, meaning that its stock price is 16% less volatile than the S&P 500. Comparatively, Modiv Industrial has a beta of -0.07, meaning that its stock price is 107% less volatile than the S&P 500.

Valuation and Earnings

This table compares Lineage and Modiv Industrial”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lineage	$5.36 billion	1.67	-$100.00 million	($0.72)	-54.51
Modiv Industrial	$46.16 million	4.04	$1.07 million	$0.36	50.14

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

Dividends

Lineage pays an annual dividend of $2.13 per share and has a dividend yield of 5.4%. Modiv Industrial pays an annual dividend of $1.20 per share and has a dividend yield of 6.6%. Lineage pays out -295.8% of its earnings in the form of a dividend. Modiv Industrial pays out 333.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Modiv Industrial has increased its dividend for 3 consecutive years. Modiv Industrial is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Lineage and Modiv Industrial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lineage	-3.15%	-1.85%	-0.89%
Modiv Industrial	16.35%	3.75%	1.55%

Summary

Modiv Industrial beats Lineage on 10 of the 17 factors compared between the two stocks.

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.

About Modiv Industrial

Modiv Industrial, Inc. is an internally managed REIT that is focused on single-tenant net-lease industrial manufacturing real estate. The Company actively acquires critical industrial manufacturing properties with long-term leases to tenants that fuel the national economy and strengthen the nation's supply chains.