Head to Head Contrast: Lineage (NASDAQ:LINE) & Dream Industrial Real Estate Investment Trust (OTCMKTS:DREUF)

Dream Industrial Real Estate Investment Trust (OTCMKTS:DREUF) and Lineage (NASDAQ:LINE) are both real estate companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, valuation, earnings, risk and analyst recommendations.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Dream Industrial Real Estate Investment Trust and Lineage, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dream Industrial Real Estate Investment Trust	0	0	0	0	N/A
Lineage	0	5	10	1	2.75

Lineage has a consensus target price of $93.87, indicating a potential upside of 13.28%. Given Lineage’s higher probable upside, analysts plainly believe Lineage is more favorable than Dream Industrial Real Estate Investment Trust.

Dividends

Dream Industrial Real Estate Investment Trust pays an annual dividend of $0.70 per share and has a dividend yield of 6.9%. Lineage pays an annual dividend of $2.90 per share and has a dividend yield of 3.5%. Dream Industrial Real Estate Investment Trust pays out 68.7% of its earnings in the form of a dividend. Lineage pays out -21.2% 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.

Institutional & Insider Ownership

46.3% of Dream Industrial Real Estate Investment Trust shares are held by institutional investors. Comparatively, 3.3% of Lineage shares are held by institutional investors. 1.4% of Lineage shares are held by 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.

Profitability

This table compares Dream Industrial Real Estate Investment Trust and Lineage’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Dream Industrial Real Estate Investment Trust	N/A	N/A	N/A
Lineage	N/A	N/A	N/A

Earnings and Valuation

This table compares Dream Industrial Real Estate Investment Trust and Lineage’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Dream Industrial Real Estate Investment Trust	N/A	N/A	N/A	$1.02	9.97
Lineage	$5.33 billion	3.79	-$3.33 billion	($13.67)	-6.06

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

Summary

Lineage beats Dream Industrial Real Estate Investment Trust on 6 of the 10 factors compared between the two stocks.

About Dream Industrial Real Estate Investment Trust

Dream Industrial REIT is an unincorporated, open-ended real estate investment trust. As at December 31, 2023, we own, manage and operate a global portfolio of well-located, diversified industrial properties comprising 327 assets totalling approximately 71.4 million square feet of GLA in key markets across Canada, Europe and the U.S. Our goal is to deliver strong total returns to our unitholders through secure distributions as well as growth in net asset value and cash flow per unit underpinned by our high-quality portfolio and an investment grade balance sheet. Our REIT Units are listed on the Toronto Stock Exchange (TSX) under the trading symbol DIR.UN.

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.