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ESRT or CUBE: Which Is the Better Value Stock Right Now?
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Investors interested in stocks from the REIT and Equity Trust - Other sector have probably already heard of Empire State Realty Trust (ESRT - 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.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, Empire State Realty Trust is sporting a Zacks Rank of #2 (Buy), while CubeSmart has a Zacks Rank of #3 (Hold). This means that ESRT's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one piece of the puzzle for value investors.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
ESRT currently has a forward P/E ratio of 10.93, while CUBE has a forward P/E of 18.39. We also note that ESRT has a PEG ratio of 6.21. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. CUBE currently has a PEG ratio of 8.88.
Another notable valuation metric for ESRT is its P/B ratio of 0.98. 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 3.92.
These metrics, and several others, help ESRT earn a Value grade of B, while CUBE has been given a Value grade of F.
ESRT stands above CUBE thanks to its solid earnings outlook, and based on these valuation figures, we also feel that ESRT is the superior value option right now.
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ESRT or CUBE: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the REIT and Equity Trust - Other sector have probably already heard of Empire State Realty Trust (ESRT - 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.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, Empire State Realty Trust is sporting a Zacks Rank of #2 (Buy), while CubeSmart has a Zacks Rank of #3 (Hold). This means that ESRT's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one piece of the puzzle for value investors.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
ESRT currently has a forward P/E ratio of 10.93, while CUBE has a forward P/E of 18.39. We also note that ESRT has a PEG ratio of 6.21. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. CUBE currently has a PEG ratio of 8.88.
Another notable valuation metric for ESRT is its P/B ratio of 0.98. 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 3.92.
These metrics, and several others, help ESRT earn a Value grade of B, while CUBE has been given a Value grade of F.
ESRT stands above CUBE thanks to its solid earnings outlook, and based on these valuation figures, we also feel that ESRT is the superior value option right now.