Head-To-Head Comparison: Alexandria Real Estate Equities (NYSE:ARE) versus Lineage (NASDAQ:LINE)

Alexandria Real Estate Equities (NYSE:ARE) and Lineage (NASDAQ:LINE) are both mid-cap finance companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, valuation, institutional ownership, earnings, dividends, profitability and analyst recommendations.

Valuation & Earnings

This table compares Alexandria Real Estate Equities 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
Alexandria Real Estate Equities	$2.86 billion	3.04	-$1.43 billion	($6.27)	-7.93
Lineage	$5.36 billion	1.89	-$100.00 million	($0.62)	-71.63

Lineage has higher revenue and earnings than Alexandria Real Estate Equities. Lineage is trading at a lower price-to-earnings ratio than Alexandria Real Estate Equities, indicating that it is currently the more affordable of the two stocks.

Dividends

Alexandria Real Estate Equities pays an annual dividend of $2.88 per share and has a dividend yield of 5.8%. Lineage pays an annual dividend of $2.13 per share and has a dividend yield of 4.8%. Alexandria Real Estate Equities pays out -45.9% of its earnings in the form of a dividend. Lineage pays out -343.5% 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. Alexandria Real Estate Equities has raised its dividend for 15 consecutive years. Alexandria Real Estate Equities is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider and Institutional Ownership

96.5% of Alexandria Real Estate Equities shares are held by institutional investors. 1.4% of Alexandria Real Estate Equities shares are held by company insiders. Comparatively, 71.9% of Lineage shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Alexandria Real Estate Equities and Lineage’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Alexandria Real Estate Equities	-36.03%	-5.21%	-2.96%
Lineage	-2.72%	-1.56%	-0.76%

Analyst Recommendations

This is a breakdown of recent ratings for Alexandria Real Estate Equities and Lineage, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alexandria Real Estate Equities	2	11	3	0	2.06
Lineage	5	11	4	0	1.95

Alexandria Real Estate Equities presently has a consensus target price of $51.23, indicating a potential upside of 3.01%. Lineage has a consensus target price of $43.28, indicating a potential downside of 2.55%. Given Alexandria Real Estate Equities’ stronger consensus rating and higher possible upside, research analysts plainly believe Alexandria Real Estate Equities is more favorable than Lineage.

Risk & Volatility

Alexandria Real Estate Equities has a beta of 1.12, meaning that its share price is 12% more volatile than the S&P 500. Comparatively, Lineage has a beta of 0.61, meaning that its share price is 39% less volatile than the S&P 500.

Summary

Lineage beats Alexandria Real Estate Equities on 9 of the 17 factors compared between the two stocks.

About Alexandria Real Estate Equities

Alexandria Real Estate Equities, Inc. (NYSE: ARE), an S&P 500 company, is a best-in-class, mission-driven life science REIT making a positive and lasting impact on the world. As the pioneer of the life science real estate niche since our founding in 1994, Alexandria is the preeminent and longest-tenured owner, operator, and developer of collaborative life science, agtech, and advanced technology mega campuses in AAA innovation cluster locations, including Greater Boston, the San Francisco Bay Area, New York City, San Diego, Seattle, Maryland, and Research Triangle. Alexandria has a total market capitalization of $33.1 billion and an asset base in North America of 73.5 million SF as of December 31, 2023, which includes 42.0 million RSF of operating properties, 5.5 million RSF of Class A/A+ properties undergoing construction and one near-term project expected to commence construction in the next two years, 2.1 million RSF of priority anticipated development and redevelopment projects, and 23.9 million SF of future development projects. Alexandria has a longstanding and proven track record of developing Class A/A+ properties clustered in life science, agtech, and advanced technology mega campuses that provide our innovative tenants with highly dynamic and collaborative environments that enhance their ability to successfully recruit and retain world-class talent and inspire productivity, efficiency, creativity, and success. Alexandria also provides strategic capital to transformative life science, agrifoodtech, climate innovation, and technology companies through our venture capital platform. We believe our unique business model and diligent underwriting ensure a high-quality and diverse tenant base that results in higher occupancy levels, longer lease terms, higher rental income, higher returns, and greater long-term asset value.

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.