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INN vs. CUBE: Which Stock Should Value Investors Buy Now?
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Investors interested in stocks from the REIT and Equity Trust - Other sector have probably already heard of Summit Hotel Properties (INN - Free Report) and CubeSmart (CUBE - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's 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 is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Summit Hotel Properties and CubeSmart are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This means that INN's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.
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 grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
INN currently has a forward P/E ratio of 8.26, while CUBE has a forward P/E of 17.63. We also note that INN has a PEG ratio of 7.12. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. CUBE currently has a PEG ratio of 7.26.
Another notable valuation metric for INN is its P/B ratio of 0.63. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, CUBE has a P/B of 4.06.
Based on these metrics and many more, INN holds a Value grade of A, while CUBE has a Value grade of D.
INN is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that INN is likely the superior value option right now.
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INN vs. CUBE: Which Stock Should Value Investors Buy Now?
Investors interested in stocks from the REIT and Equity Trust - Other sector have probably already heard of Summit Hotel Properties (INN - Free Report) and CubeSmart (CUBE - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's 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 is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Summit Hotel Properties and CubeSmart are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This means that INN's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.
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 grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
INN currently has a forward P/E ratio of 8.26, while CUBE has a forward P/E of 17.63. We also note that INN has a PEG ratio of 7.12. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. CUBE currently has a PEG ratio of 7.26.
Another notable valuation metric for INN is its P/B ratio of 0.63. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, CUBE has a P/B of 4.06.
Based on these metrics and many more, INN holds a Value grade of A, while CUBE has a Value grade of D.
INN is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that INN is likely the superior value option right now.