Critical Survey: Lineage (NASDAQ:LINE) vs. Modiv Industrial (NYSE:MDV)

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

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Modiv Industrial	$46.16 million	4.04	$1.07 million	$0.36	50.14
Lineage	$5.36 billion	1.63	-$100.00 million	($0.72)	-53.08

Modiv Industrial has higher earnings, but lower revenue 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.

Analyst Recommendations

This is a breakdown of recent ratings for Modiv Industrial and Lineage, as provided by MarketBeat.

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

Modiv Industrial presently has a consensus target price of $18.50, indicating a potential upside of 2.49%. Lineage has a consensus target price of $44.20, indicating a potential upside of 15.65%. Given Lineage’s stronger consensus rating and higher possible upside, analysts clearly believe Lineage is more favorable than Modiv Industrial.

Profitability

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

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

Institutional and Insider Ownership

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

Dividends

Modiv Industrial pays an annual dividend of $1.20 per share and has a dividend yield of 6.6%. Lineage pays an annual dividend of $2.13 per share and has a dividend yield of 5.6%. 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. Lineage pays out -295.8% of its earnings in the form of a dividend. Modiv Industrial has raised 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.

Volatility and Risk

Modiv Industrial has a beta of -0.07, suggesting that its share price is 107% less volatile than the S&P 500. Comparatively, Lineage has a beta of 0.82, suggesting that its share price is 18% less volatile than the S&P 500.

Summary

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

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.

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.