Head-To-Head Comparison: Lineage (NASDAQ:LINE) versus Terreno Realty (NYSE:TRNO)

Terreno Realty (NYSE:TRNO) and Lineage (NASDAQ:LINE) are both mid-cap real estate companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, institutional ownership, dividends, analyst recommendations, valuation, profitability and earnings.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Terreno Realty and Lineage, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Terreno Realty	2	3	7	1	2.54
Lineage	3	9	5	0	2.12

Terreno Realty currently has a consensus price target of $72.86, indicating a potential upside of 6.72%. Lineage has a consensus price target of $44.20, indicating a potential upside of 6.02%. Given Terreno Realty’s stronger consensus rating and higher probable upside, analysts clearly believe Terreno Realty is more favorable than Lineage.

Profitability

This table compares Terreno Realty and Lineage’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Terreno Realty	77.22%	9.21%	7.07%
Lineage	-3.15%	-1.85%	-0.89%

Valuation and Earnings

This table compares Terreno Realty and Lineage”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Terreno Realty	$476.38 million	15.62	$402.99 million	$3.73	18.30
Lineage	$5.36 billion	1.77	-$100.00 million	($0.72)	-57.90

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

Dividends

Terreno Realty pays an annual dividend of $2.08 per share and has a dividend yield of 3.0%. Lineage pays an annual dividend of $2.13 per share and has a dividend yield of 5.1%. Terreno Realty pays out 55.8% of its earnings in the form of a dividend. Lineage pays out -295.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Terreno Realty has increased its dividend for 5 consecutive years. Lineage is clearly the better dividend stock, given its higher yield and lower payout ratio.

Volatility & Risk

Terreno Realty has a beta of 1.03, suggesting that its share price is 3% more volatile than the S&P 500. Comparatively, Lineage has a beta of 0.84, suggesting that its share price is 16% less volatile than the S&P 500.

Summary

Terreno Realty beats Lineage on 13 of the 16 factors compared between the two stocks.

About Terreno Realty

Terreno Realty Corporation (Terreno, and together with its subsidiaries, the Company) acquires, owns and operates industrial real estate in six major coastal U.S. markets: Los Angeles, Northern New Jersey/New York City, San Francisco Bay Area, Seattle, Miami, and Washington, D.C. All square feet, acres, occupancy and number of properties disclosed in these notes to the consolidated financial statements are unaudited. As of December 31, 2023, the Company owned 259 buildings aggregating approximately 16.0 million square feet, 45 improved land parcels consisting of approximately 152.4 acres, seven properties under development or redevelopment and approximately 62.7 acres of land entitled for future development. The Company is an internally managed Maryland corporation and elected to be taxed as a real estate investment trust (REIT) under Sections 856 through 860 of the Internal Revenue Code of 1986, as amended (the Code), commencing with its taxable year ended December 31, 2010.

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.