DRH vs. CUBE: Which Stock Is the Better Value Option?

Investors looking for stocks in the REIT and Equity Trust - Other sector might want to consider either DiamondRock Hospitality (DRH) or CubeSmart (CUBE). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.Currently, DiamondRock Hospitality has a Zacks Rank of #2 (Buy), while CubeSmart has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that DRH likely has seen a stronger improvement to its earnings outlook than CUBE has recently. But this is just one piece of the puzzle for value investors.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.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.DRH currently has a forward P/E ratio of 8.21, while CUBE has a forward P/E of 15.60. We also note that DRH has a PEG ratio of 4.72. 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 11.56.Another notable valuation metric for DRH is its P/B ratio of 1.06. 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 3.38.These metrics, and several others, help DRH earn a Value grade of A, while CUBE has been given a Value grade of D.DRH sticks out from CUBE in both our Zacks Rank and Style Scores models, so value investors will likely feel that DRH is the better option right now.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report DiamondRock Hospitality Company (DRH): Free Stock Analysis Report CubeSmart (CUBE): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks