Contrasting Dynex Capital (NYSE:DX) and Lineage (NASDAQ:LINE)

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

Valuation & Earnings

This table compares Dynex Capital and Lineage”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Dynex Capital	$123.18 million	8.05	-$6.13 million	$1.26	9.92
Lineage	$5.33 billion	2.42	-$77.40 million	N/A	N/A

Dynex Capital has higher earnings, but lower revenue than Lineage.

Dividends

Dynex Capital pays an annual dividend of $1.80 per share and has a dividend yield of 14.4%. Lineage pays an annual dividend of $2.11 per share and has a dividend yield of 3.7%. Dynex Capital pays out 142.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Analyst Ratings

This is a summary of recent ratings for Dynex Capital and Lineage, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dynex Capital	0	1	4	0	2.80
Lineage	0	6	10	1	2.71

Dynex Capital currently has a consensus price target of $13.56, suggesting a potential upside of 8.50%. Lineage has a consensus price target of $87.31, suggesting a potential upside of 54.62%. Given Lineage’s higher possible upside, analysts clearly believe Lineage is more favorable than Dynex Capital.

Institutional and Insider Ownership

38.3% of Dynex Capital shares are owned by institutional investors. 2.5% of Dynex Capital 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, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Dynex Capital and Lineage’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Dynex Capital	28.83%	-4.80%	-0.63%
Lineage	-12.18%	-9.89%	-3.51%

Summary

Dynex Capital beats Lineage on 9 of the 14 factors compared between the two stocks.

About Dynex Capital

Dynex Capital, Inc., a mortgage real estate investment trust, invests in mortgage-backed securities (MBS) on a leveraged basis in the United States. It invests in agency and non-agency MBS consisting of residential MBS, commercial MBS (CMBS), and CMBS interest-only securities. Agency MBS have a guaranty of principal payment by an agency of the U.S. government or a U.S. government-sponsored entity, such as Fannie Mae and Freddie Mac. Non-Agency MBS have no such guaranty of payment. The company has qualified as a real estate investment trust for federal income tax purposes. It generally would not be subject to federal income taxes if it distributes at least 90% of its taxable income to its stockholders as dividends. Dynex Capital, Inc. was incorporated in 1987 and is headquartered in Glen Allen, Virginia.

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.