Equity Residential (NYSE:EQR – Get Free Report) and Lineage (NASDAQ:LINE – Get Free Report) are both large-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, risk, profitability, valuation, dividends, institutional ownership and analyst recommendations.
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for Equity Residential and Lineage, as reported by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Equity Residential | 0 | 11 | 7 | 0 | 2.39 |
Lineage | 0 | 5 | 11 | 1 | 2.76 |
Equity Residential presently has a consensus price target of $75.62, indicating a potential downside of 1.26%. Lineage has a consensus price target of $93.63, indicating a potential upside of 15.66%. Given Lineage’s stronger consensus rating and higher probable upside, analysts plainly believe Lineage is more favorable than Equity Residential.
Dividends
Insider and Institutional Ownership
92.7% of Equity Residential shares are owned by institutional investors. Comparatively, 3.3% of Lineage shares are owned by institutional investors. 1.0% of Equity Residential shares are owned by company insiders. Comparatively, 1.4% of Lineage shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Profitability
This table compares Equity Residential and Lineage’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Equity Residential | 32.83% | 8.53% | 4.80% |
Lineage | N/A | N/A | N/A |
Valuation and Earnings
This table compares Equity Residential and Lineage”s gross revenue, earnings per share (EPS) and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Equity Residential | $2.92 billion | 9.97 | $835.44 million | $2.41 | 31.78 |
Lineage | $5.33 billion | 3.46 | -$3.11 billion | ($13.67) | -5.92 |
Equity Residential has higher earnings, but lower revenue than Lineage. Lineage is trading at a lower price-to-earnings ratio than Equity Residential, indicating that it is currently the more affordable of the two stocks.
Summary
Equity Residential beats Lineage on 9 of the 16 factors compared between the two stocks.
About Equity Residential
Equity Residential is committed to creating communities where people thrive. The Company, a member of the S&P 500, is focused on the acquisition, development and management of residential properties located in and around dynamic cities that attract affluent long-term renters. Equity Residential owns or has investments in 305 properties consisting of 80,683 apartment units, with an established presence in Boston, New York, Washington, D.C., Seattle, San Francisco and Southern California, and an expanding presence in Denver, Atlanta, Dallas/Ft. Worth and Austin.
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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