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MDV or CUBE: Which Is the Better Value Stock Right Now?

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Investors interested in REIT and Equity Trust - Other stocks are likely familiar with Modiv Inc. (MDV - 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.

The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Currently, Modiv Inc. has a Zacks Rank of #1 (Strong Buy), while CubeSmart has a Zacks Rank of #2 (Buy). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that MDV is likely seeing its earnings outlook improve to a greater extent. But this is just one piece of the puzzle for value investors.

Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.

The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.

MDV currently has a forward P/E ratio of 9.05, while CUBE has a forward P/E of 16.28. We also note that MDV has a PEG ratio of 1.51. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. CUBE currently has a PEG ratio of 3.08.

Another notable valuation metric for MDV is its P/B ratio of 0.37. 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 3.52.

These metrics, and several others, help MDV earn a Value grade of B, while CUBE has been given a Value grade of D.

MDV sticks out from CUBE in both our Zacks Rank and Style Scores models, so value investors will likely feel that MDV is the better option right now.


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