Reviewing Lineage (NASDAQ:LINE) and Industrial Logistics Properties Trust (NASDAQ:ILPT)

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

Earnings & Valuation

This table compares Industrial Logistics Properties Trust and Lineage”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Industrial Logistics Properties Trust	$448.85 million	1.23	-$66.19 million	($0.72)	-11.53
Lineage	$5.36 billion	1.77	-$100.00 million	($0.72)	-57.79

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

Institutional and Insider Ownership

49.1% of Industrial Logistics Properties Trust shares are held by institutional investors. 2.3% of Industrial Logistics Properties Trust shares are held by insiders. Comparatively, 71.6% of Lineage shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Industrial Logistics Properties Trust	-10.37%	-5.34%	-0.91%
Lineage	-3.15%	-1.85%	-0.89%

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Industrial Logistics Properties Trust	1	1	1	0	2.00
Lineage	3	9	5	0	2.12

Industrial Logistics Properties Trust presently has a consensus price target of $11.50, indicating a potential upside of 38.55%. Lineage has a consensus price target of $44.20, indicating a potential upside of 6.22%. Given Industrial Logistics Properties Trust’s higher probable upside, analysts clearly believe Industrial Logistics Properties Trust is more favorable than Lineage.

Volatility & Risk

Industrial Logistics Properties Trust has a beta of 2.49, indicating that its share price is 149% more volatile than the S&P 500. Comparatively, Lineage has a beta of 0.85, indicating that its share price is 15% less volatile than the S&P 500.

Dividends

Industrial Logistics Properties Trust pays an annual dividend of $0.40 per share and has a dividend yield of 4.8%. Lineage pays an annual dividend of $2.13 per share and has a dividend yield of 5.1%. Industrial Logistics Properties Trust pays out -55.6% 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. Lineage is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Lineage beats Industrial Logistics Properties Trust on 10 of the 15 factors compared between the two stocks.

About Industrial Logistics Properties Trust

Industrial Logistics Properties Trust (Nasdaq: ILPT) is a real estate investment trust, or REIT, focused on owning and leasing high quality distribution and logistics properties. As of December 31, 2023, ILPT's portfolio consisted of 411 properties containing approximately 60 million rentable square feet located in 39 states. Approximately 77% of ILPT's annualized rental revenues as of December 31, 2023 are derived from investment grade tenants, tenants that are subsidiaries of investment grade rated entities or Hawaii land leases. ILPT is managed by The RMR Group (Nasdaq: RMR), a leading U.S. alternative asset management company with over $41 billion in assets under management as of December 31, 2023 and more than 35 years of institutional experience in buying, selling, financing and operating commercial real estate. ILPT is headquartered in Newton, MA.

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.