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PINE vs. CUBE: Which Stock Should Value Investors Buy Now?

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Investors with an interest in REIT and Equity Trust - Other stocks have likely encountered both Alpine Income (PINE - Free Report) and CubeSmart (CUBE - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.

We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Alpine Income and CubeSmart are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. Investors should feel comfortable knowing that PINE likely has seen a stronger improvement to its earnings outlook than CUBE has recently. However, value investors will care about much more than just this.

Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.

Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.

PINE currently has a forward P/E ratio of 10.97, while CUBE has a forward P/E of 16.72. We also note that PINE has a PEG ratio of 1.83. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. CUBE currently has a PEG ratio of 1.97.

Another notable valuation metric for PINE is its P/B ratio of 0.85. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, CUBE has a P/B of 3.28.

These are just a few of the metrics contributing to PINE's Value grade of B and CUBE's Value grade of D.

PINE stands above CUBE thanks to its solid earnings outlook, and based on these valuation figures, we also feel that PINE is the superior value option right now.


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