Prologis (NYSE:PLD – Get Free Report) and Lineage (NASDAQ:LINE – Get Free Report) are both real estate companies, but which is the better business? We will compare the two companies based on the strength of their valuation, dividends, analyst recommendations, risk, earnings, profitability and institutional ownership.
Risk & Volatility
Prologis has a beta of 1.31, indicating that its share price is 31% 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.
Analyst Ratings
This is a breakdown of current ratings for Prologis and Lineage, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Prologis | 0 | 7 | 16 | 0 | 2.70 |
| Lineage | 4 | 9 | 5 | 0 | 2.06 |
Dividends
Prologis pays an annual dividend of $4.28 per share and has a dividend yield of 3.1%. Lineage pays an annual dividend of $2.13 per share and has a dividend yield of 5.0%. Prologis pays out 95.3% 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 -343.5% of its earnings in the form of a dividend. Prologis has raised its dividend for 12 consecutive years. Lineage is clearly the better dividend stock, given its higher yield and lower payout ratio.
Institutional & Insider Ownership
93.5% of Prologis shares are owned by institutional investors. 0.5% of Prologis shares are owned by company insiders. Comparatively, 71.6% of Lineage shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Earnings & Valuation
This table compares Prologis and Lineage”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Prologis | $9.19 billion | 14.22 | $3.33 billion | $4.49 | 31.19 |
| Lineage | $5.36 billion | 1.80 | -$100.00 million | ($0.62) | -68.32 |
Prologis has higher revenue and earnings than Lineage. Lineage is trading at a lower price-to-earnings ratio than Prologis, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Prologis and Lineage’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Prologis | 45.79% | 7.29% | 4.25% |
| Lineage | -3.15% | -1.83% | -0.88% |
Summary
Prologis beats Lineage on 14 of the 17 factors compared between the two stocks.
About Prologis
Prologis, Inc. is the global leader in logistics real estate with a focus on high-barrier, high-growth markets. At March 31, 2024, the company owned or had investments in, on a wholly owned basis or through co-investment ventures, properties and development projects expected to total approximately 1.2 billion square feet (115 million square meters) in 19 countries. Prologis leases modern logistics facilities to a diverse base of approximately 6,700 customers principally across two major categories: business-to-business and retail/online fulfillment.
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.
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