One Liberty Properties (NYSE:OLP) versus Lineage (NASDAQ:LINE) Critical Review

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

Analyst Recommendations

This is a summary of current ratings and recommmendations for Lineage and One Liberty Properties, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lineage	3	9	5	0	2.12
One Liberty Properties	1	0	1	1	2.67

Lineage presently has a consensus target price of $44.07, indicating a potential upside of 12.07%. One Liberty Properties has a consensus target price of $28.50, indicating a potential upside of 18.11%. Given One Liberty Properties’ stronger consensus rating and higher possible upside, analysts plainly believe One Liberty Properties is more favorable than Lineage.

Insider and Institutional Ownership

36.2% of One Liberty Properties shares are owned by institutional investors. 71.6% of Lineage shares are owned by insiders. Comparatively, 26.2% of One Liberty Properties shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Lineage and One Liberty Properties”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lineage	$5.36 billion	1.67	-$100.00 million	($0.72)	-54.61
One Liberty Properties	$103.80 million	5.09	$25.47 million	$1.59	15.18

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

Dividends

Lineage pays an annual dividend of $2.13 per share and has a dividend yield of 5.4%. One Liberty Properties pays an annual dividend of $1.80 per share and has a dividend yield of 7.5%. Lineage pays out -295.8% of its earnings in the form of a dividend. One Liberty Properties pays out 113.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Volatility & Risk

Lineage has a beta of 0.84, indicating that its share price is 16% less volatile than the S&P 500. Comparatively, One Liberty Properties has a beta of 0.87, indicating that its share price is 13% less volatile than the S&P 500.

Profitability

This table compares Lineage and One Liberty Properties’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lineage	-3.15%	-1.85%	-0.89%
One Liberty Properties	33.51%	11.52%	4.06%

Summary

One Liberty Properties beats Lineage on 13 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 One Liberty Properties

One Liberty Properties, Inc. is a real estate investment trust, which engages in acquisition, ownership, and management of the geographically diversified portfolio consisting primarily of industrial, retail, restaurant, health and fitness, and theater properties, many of which are subject to long-term leases. The properties in the firm’s portfolio include net leases, long-term lease, and scheduled rent increases. The company was founded in December 1982 and is headquartered in Great Neck, NY.