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WSR 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 Whitestone (WSR - 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, Whitestone has a Zacks Rank of #2 (Buy), while CubeSmart has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that WSR has an improving earnings outlook. But this is just one factor that value investors are interested in.

Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their 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.

WSR currently has a forward P/E ratio of 10.52, while CUBE has a forward P/E of 16.60. We also note that WSR has a PEG ratio of 1.32. 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 3.16.

Another notable valuation metric for WSR is its P/B ratio of 1.05. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, CUBE has a P/B of 3.56.

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

WSR 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 WSR is likely the superior value option right now.


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