Omega Healthcare Investors (NYSE:OHI) & Lineage (NASDAQ:LINE) Critical Survey

Omega Healthcare Investors (NYSE:OHI) and Lineage (NASDAQ:LINE) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, valuation, analyst recommendations, institutional ownership, earnings, profitability and dividends.

Dividends

Omega Healthcare Investors pays an annual dividend of $2.68 per share and has a dividend yield of 6.0%. Lineage pays an annual dividend of $2.13 per share and has a dividend yield of 5.0%. 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. Lineage pays out -343.5% of its earnings in the form of a dividend.

Valuation & Earnings

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

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

Omega Healthcare Investors has higher earnings, but lower revenue 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.

Profitability

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

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

Risk and Volatility

Omega Healthcare Investors has a beta of 0.58, meaning that its stock price is 42% less volatile than the S&P 500. Comparatively, Lineage has a beta of 0.88, meaning that its stock price is 12% less volatile than the S&P 500.

Institutional and Insider Ownership

65.3% of Omega Healthcare Investors shares are owned by institutional investors. 1.5% of Omega Healthcare Investors shares are owned by insiders. Comparatively, 71.6% of Lineage shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Ratings

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

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

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

Summary

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

About Omega Healthcare Investors

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.

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.