Head to Head Analysis: Lineage (NASDAQ:LINE) & Modiv Industrial (NYSE:MDV)

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

Risk & Volatility

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

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	0.33%	0.07%	0.03%
Lineage	-3.15%	-1.85%	-0.89%

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Modiv Industrial	$46.39 million	4.04	$1.07 million	($0.41)	-44.29
Lineage	$5.36 billion	1.80	-$100.00 million	($0.72)	-58.83

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 Ratings

This is a breakdown of recent recommendations and price targets for Modiv Industrial and Lineage, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Modiv Industrial	0	6	0	0	2.00
Lineage	4	9	5	0	2.06

Modiv Industrial presently has a consensus target price of $18.50, indicating a potential upside of 1.87%. Lineage has a consensus target price of $43.62, indicating a potential upside of 2.99%. Given Lineage’s stronger consensus rating and higher possible 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. 2.8% of Modiv Industrial shares are owned by insiders. Comparatively, 71.6% of Lineage shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds 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 5.0%. Modiv Industrial pays out -292.7% 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. 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.

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.