LXP Industrial Trust (NYSE:LXP) versus Lineage (NASDAQ:LINE) Financial Survey

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

Institutional and Insider Ownership

93.5% of LXP Industrial Trust shares are held by institutional investors. 71.6% of Lineage shares are held by company insiders. Comparatively, 2.8% of LXP Industrial Trust shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Dividends

Lineage pays an annual dividend of $2.13 per share and has a dividend yield of 5.7%. LXP Industrial Trust pays an annual dividend of $2.80 per share and has a dividend yield of 4.6%. Lineage pays out -295.8% of its earnings in the form of a dividend. LXP Industrial Trust pays out 280.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. LXP Industrial Trust has raised its dividend for 3 consecutive years. Lineage is clearly the better dividend stock, given its higher yield and lower payout ratio.

Volatility & Risk

Lineage has a beta of 0.82, suggesting that its stock price is 18% less volatile than the S&P 500. Comparatively, LXP Industrial Trust has a beta of 1.02, suggesting that its stock price is 2% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Lineage	-3.15%	-1.85%	-0.89%
LXP Industrial Trust	18.66%	3.37%	1.83%

Analyst Ratings

This is a summary of recent recommendations and price targets for Lineage and LXP Industrial Trust, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lineage	3	9	5	0	2.12
LXP Industrial Trust	0	7	2	0	2.22

Lineage presently has a consensus price target of $44.20, indicating a potential upside of 17.58%. LXP Industrial Trust has a consensus price target of $57.40, indicating a potential downside of 5.57%. Given Lineage’s higher possible upside, equities analysts clearly believe Lineage is more favorable than LXP Industrial Trust.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lineage	$5.36 billion	1.60	-$100.00 million	($0.72)	-52.21
LXP Industrial Trust	$350.23 million	10.23	$113.16 million	$1.00	60.78

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

Summary

LXP Industrial Trust beats Lineage on 11 of the 17 factors compared between the two stocks.

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.

About LXP Industrial Trust

LXP Industrial Trust (NYSE: LXP) is a publicly traded real estate investment trust (REIT) focused on single-tenant industrial real estate investments across the United States. LXP seeks to expand its industrial portfolio through acquisitions, build-to-suit transactions, sale-leaseback transactions, development projects and other transactions.