Reviewing Lineage (NASDAQ:LINE) and Equity Residential (NYSE:EQR)

by · The Cerbat Gem

Equity Residential (NYSE:EQRGet Free Report) and Lineage (NASDAQ:LINEGet Free Report) are both large-cap finance companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, valuation, institutional ownership, risk, profitability, dividends and earnings.

Dividends

Equity Residential pays an annual dividend of $2.70 per share and has a dividend yield of 3.7%. Lineage pays an annual dividend of $1.52 per share and has a dividend yield of 1.9%. Equity Residential pays out 112.0% 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 -11.1% of its earnings in the form of a dividend.

Valuation and Earnings

This table compares Equity Residential and Lineage”s gross revenue, earnings per share (EPS) and valuation.

Gross RevenuePrice/Sales RatioNet IncomeEarnings Per SharePrice/Earnings Ratio
Equity Residential$2.92 billion9.63$835.44 million$2.4130.69
Lineage$5.33 billion3.35-$3.11 billion($13.67)-5.73

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

Insider and Institutional Ownership

92.7% of Equity Residential shares are owned by institutional investors. Comparatively, 3.3% of Lineage shares are owned by institutional investors. 1.0% of Equity Residential shares are owned by company insiders. Comparatively, 1.4% of Lineage shares are owned by company 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.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Equity Residential and Lineage, as provided by MarketBeat.com.

Sell RatingsHold RatingsBuy RatingsStrong Buy RatingsRating Score
Equity Residential012702.37
Lineage051112.76

Equity Residential currently has a consensus target price of $75.97, suggesting a potential upside of 2.71%. Lineage has a consensus target price of $93.63, suggesting a potential upside of 19.59%. Given Lineage’s stronger consensus rating and higher possible upside, analysts plainly believe Lineage is more favorable than Equity Residential.

Profitability

This table compares Equity Residential and Lineage’s net margins, return on equity and return on assets.

Net MarginsReturn on EquityReturn on Assets
Equity Residential32.83%8.53%4.80%
LineageN/AN/AN/A

Summary

Equity Residential beats Lineage on 9 of the 16 factors compared between the two stocks.

About Equity Residential

(Get Free Report)

Equity Residential is committed to creating communities where people thrive. The Company, a member of the S&P 500, is focused on the acquisition, development and management of residential properties located in and around dynamic cities that attract affluent long-term renters. Equity Residential owns or has investments in 305 properties consisting of 80,683 apartment units, with an established presence in Boston, New York, Washington, D.C., Seattle, San Francisco and Southern California, and an expanding presence in Denver, Atlanta, Dallas/Ft. Worth and Austin.

About Lineage

(Get Free Report)

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.