Head-To-Head Survey: Omega Healthcare Investors (NYSE:OHI) & Lineage (NASDAQ:LINE)

Lineage (NASDAQ:LINEGet Free Report) and Omega Healthcare Investors (NYSE:OHIGet Free Report) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, dividends, risk, earnings, profitability and valuation.

Profitability

This table compares Lineage and Omega Healthcare Investors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Lineage -2.72% -1.56% -0.76%
Omega Healthcare Investors 51.14% 11.86% 6.10%

Risk and Volatility

Lineage has a beta of 0.87, suggesting that its share price is 13% less volatile than the S&P 500. Comparatively, Omega Healthcare Investors has a beta of 0.58, suggesting that its share price is 42% less volatile than the S&P 500.

Insider & Institutional Ownership

65.3% of Omega Healthcare Investors shares are owned by institutional investors. 71.6% of Lineage shares are owned by insiders. Comparatively, 1.5% of Omega Healthcare Investors shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and price targets for Lineage and Omega Healthcare Investors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Lineage 5 11 4 0 1.95
Omega Healthcare Investors 1 7 6 0 2.36

Lineage currently has a consensus target price of $43.56, suggesting a potential upside of 2.17%. Omega Healthcare Investors has a consensus target price of $49.17, suggesting a potential upside of 10.41%. Given Omega Healthcare Investors’ stronger consensus rating and higher possible upside, analysts clearly believe Omega Healthcare Investors is more favorable than Lineage.

Earnings and Valuation

This table compares Lineage and Omega Healthcare Investors”s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Lineage $5.36 billion 1.81 -$100.00 million ($0.62) -68.76
Omega Healthcare Investors $1.19 billion 11.14 $572.03 million $2.07 21.51

Omega Healthcare Investors has lower revenue, but higher earnings than Lineage. Lineage is trading at a lower price-to-earnings ratio than Omega Healthcare Investors, 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 5.0%. Omega Healthcare Investors pays an annual dividend of $2.68 per share and has a dividend yield of 6.0%. Lineage pays out -343.5% of its earnings in the form of a dividend. Omega Healthcare Investors pays out 129.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

Omega Healthcare Investors beats Lineage on 12 of the 16 factors compared between the two stocks.

About Lineage

(Get Free Report)

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 Omega Healthcare Investors

(Get Free Report)

Omega Healthcare Investors, Inc. engages in the provision of financing and capital to the long-term healthcare industry with a particular focus on skilled nursing facilities, assisted living facilities, independent living facilities, rehabilitation and acute care facilities, and medical office buildings. The company was founded on March 31, 1992 and is headquartered in Hunt Valley, MD.

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