DRH vs. CUBE: Which Stock Should Value Investors Buy Now?

Group 1 - The article compares two stocks, DiamondRock Hospitality (DRH) and CubeSmart (CUBE), to determine which offers better value for investors [1] - DRH has a Zacks Rank of 2 (Buy), indicating a stronger earnings outlook compared to CUBE, which has a Zacks Rank of 3 (Hold) [3][7] - Value investors typically consider various traditional metrics to identify undervalued stocks, beyond just earnings outlook [3] Group 2 - The Value category of the Style Scores system evaluates companies based on key metrics such as P/E ratio, P/S ratio, earnings yield, and cash flow per share [4] - DRH has a forward P/E ratio of 8.03, significantly lower than CUBE's forward P/E of 15.85, suggesting DRH may be undervalued [5] - DRH's PEG ratio is 4.61, while CUBE's PEG ratio is 7.51, indicating DRH's expected earnings growth is more favorable [5] - DRH's P/B ratio is 1.07, compared to CUBE's P/B of 3.26, further supporting DRH's valuation as more attractive [6] - Based on these valuation metrics, DRH holds a Value grade of B, while CUBE has a Value grade of D [6]