Lineage (NASDAQ:LINE – Get Free Report) and Gladstone Commercial (NASDAQ:GOOD – Get Free Report) are both real estate companies, but which is the better investment? We will compare the two companies based on the strength of their risk, dividends, earnings, profitability, valuation, analyst recommendations and institutional ownership.
Dividends
Lineage pays an annual dividend of $2.13 per share and has a dividend yield of 6.1%. Gladstone Commercial pays an annual dividend of $1.20 per share and has a dividend yield of 9.5%. Lineage pays out -295.8% of its earnings in the form of a dividend. Gladstone Commercial pays out 461.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Analyst Ratings
This is a breakdown of recent ratings and target prices for Lineage and Gladstone Commercial, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Lineage | 3 | 9 | 5 | 0 | 2.12 |
| Gladstone Commercial | 0 | 4 | 0 | 0 | 2.00 |
Institutional & Insider Ownership
45.5% of Gladstone Commercial shares are owned by institutional investors. 71.6% of Lineage shares are owned by company insiders. Comparatively, 1.3% of Gladstone Commercial shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Volatility and Risk
Lineage has a beta of 0.82, suggesting that its stock price is 18% less volatile than the S&P 500. Comparatively, Gladstone Commercial has a beta of 1.08, suggesting that its stock price is 8% more volatile than the S&P 500.
Profitability
This table compares Lineage and Gladstone Commercial’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% |
| Gladstone Commercial | 14.55% | 14.61% | 1.99% |
Valuation and Earnings
This table compares Lineage and Gladstone Commercial”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Lineage | $5.36 billion | 1.49 | -$100.00 million | ($0.72) | -48.71 |
| Gladstone Commercial | $161.34 million | 3.79 | $19.29 million | $0.26 | 48.54 |
Gladstone Commercial has lower revenue, but higher earnings than Lineage. Lineage is trading at a lower price-to-earnings ratio than Gladstone Commercial, indicating that it is currently the more affordable of the two stocks.
Summary
Gladstone Commercial beats Lineage on 10 of the 16 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 Gladstone Commercial
Gladstone Commercial Corporation is a real estate investment trust focused on acquiring, owning, and operating net leased industrial and office properties across the United States. Including payments through January 2024, Gladstone Commercial has paid 229 consecutive monthly cash distributions on its common stock. Prior to paying distributions on a monthly basis, Gladstone Commercial paid five consecutive quarterly cash distributions. Gladstone Commercial has never skipped or deferred a distribution since its inception in 2003.
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