Lineage (NASDAQ:LINE) vs. Kilroy Realty (NYSE:KRC) Head-To-Head Analysis

Kilroy Realty (NYSE:KRC) and Lineage (NASDAQ:LINE) are both mid-cap finance companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, valuation, profitability, risk, earnings and dividends.

Profitability

This table compares Kilroy Realty and Lineage’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kilroy Realty	28.68%	5.75%	2.96%
Lineage	-3.30%	-1.85%	-0.93%

Insider & Institutional Ownership

94.2% of Kilroy Realty shares are held by institutional investors. 1.6% of Kilroy Realty shares are held by company insiders. Comparatively, 71.9% of Lineage shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Volatility & Risk

Kilroy Realty has a beta of 1.22, indicating that its stock price is 22% more volatile than the S&P 500. Comparatively, Lineage has a beta of -0.15, indicating that its stock price is 115% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Kilroy Realty and Lineage, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kilroy Realty	1	9	3	0	2.15
Lineage	6	9	5	0	1.95

Kilroy Realty currently has a consensus price target of $42.00, suggesting a potential downside of 2.08%. Lineage has a consensus price target of $45.17, suggesting a potential upside of 26.18%. Given Lineage’s higher possible upside, analysts clearly believe Lineage is more favorable than Kilroy Realty.

Dividends

Kilroy Realty pays an annual dividend of $2.16 per share and has a dividend yield of 5.0%. Lineage pays an annual dividend of $2.11 per share and has a dividend yield of 5.9%. Kilroy Realty pays out 79.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Lineage pays out -267.1% of its earnings in the form of a dividend. Lineage is clearly the better dividend stock, given its higher yield and lower payout ratio.

Valuation and Earnings

This table compares Kilroy Realty and Lineage”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kilroy Realty	$1.13 billion	4.50	$210.97 million	$2.71	15.83
Lineage	$5.34 billion	1.53	-$686.00 million	($0.79)	-45.31

Kilroy Realty has higher earnings, but lower revenue than Lineage. Lineage is trading at a lower price-to-earnings ratio than Kilroy Realty, indicating that it is currently the more affordable of the two stocks.

Summary

Kilroy Realty beats Lineage on 10 of the 16 factors compared between the two stocks.

About Kilroy Realty

Kilroy Realty Corporation (NYSE: KRC, the company, Kilroy) is a leading U.S. landlord and developer, with operations in San Diego, Greater Los Angeles, the San Francisco Bay Area, Greater Seattle and Austin. The company has earned global recognition for sustainability, building operations, innovation and design. As a pioneer and innovator in the creation of a more sustainable real estate industry, the company's approach to modern business environments helps drive creativity and productivity for some of the world's leading technology, entertainment, life science and business services companies. The company is a publicly traded real estate investment trust (REIT) and member of the S&P MidCap 400 Index with more than seven decades of experience developing, acquiring and managing office, life science and mixed-use projects. As of December 31, 2023, Kilroy's stabilized portfolio totaled approximately 17.0 million square feet of primarily office and life science space that was 85.0% occupied and 86.4% leased. The company also had approximately 1,000 residential units in Hollywood and San Diego, which had a quarterly average occupancy of 92.5%. In addition, the company had two in-process life science redevelopment projects totaling approximately 100,000 square feet with total estimated redevelopment costs of $80.0 million and one approximately 875,000 square foot in-process development project with a total estimated investment of $1.0 billion.

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.