Yahoo Finance DEI vs. CUBE: Which Stock Should Value Investors Buy Now?
Investors looking for stocks in the REIT and Equity Trust - Other sector might want to consider either Douglas Emmett (DEI) or CubeSmart (CUBE). But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, Douglas Emmett is sporting a Zacks Rank of #2 (Buy), while CubeSmart has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that DEI 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.
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.
DEI currently has a forward P/E ratio of 9.74, while CUBE has a forward P/E of 19.42. We also note that DEI has a PEG ratio of 1.86. 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 2.47.
Another notable valuation metric for DEI is its P/B ratio of 0.83. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, CUBE has a P/B of 3.83.
Based on these metrics and many more, DEI holds a Value grade of B, while CUBE has a Value grade of D.
DEI stands above CUBE thanks to its solid earnings outlook, and based on these valuation figures, we also feel that DEI is the superior value option right now.
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Douglas Emmett, Inc. (DEI) : Free Stock Analysis Report
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