WallStSmart

CubeSmart (CUBE)vsRLJ Lodging Trust (RLJ)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

RLJ Lodging Trust generates 21% more annual revenue ($1.38B vs $1.14B). CUBE leads profitability with a 29.3% profit margin vs 2.0%. RLJ appears more attractively valued with a PEG of 2.06. CUBE earns a higher WallStSmart Score of 56/100 (C).

CUBE

Buy

56

out of 100

Grade: C

Growth: 4.7Profit: 8.0Value: 5.3Quality: 3.0
Piotroski: 2/9Altman Z: 0.43

RLJ

Buy

53

out of 100

Grade: C-

Growth: 5.3Profit: 4.5Value: 5.3Quality: 4.5
Piotroski: 5/9Altman Z: 0.60
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CUBEUndervalued (+26.9%)

Margin of Safety

+26.9%

Fair Value

$52.85

Current Price

$39.55

$13.30 discount

UndervaluedFair: $52.85Overvalued
RLJUndervalued (+55.7%)

Margin of Safety

+55.7%

Fair Value

$18.99

Current Price

$10.79

$8.20 discount

UndervaluedFair: $18.99Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CUBE2 strengths · Avg: 9.5/10
Operating MarginProfitability
41.1%10/10

Strong operational efficiency at 41.1%

Profit MarginProfitability
29.3%9/10

Keeps 29 of every $100 in revenue as profit

RLJ1 strengths · Avg: 10.0/10
Price/BookValuation
0.9x10/10

Reasonable price relative to book value

Areas to Watch

CUBE4 concerns · Avg: 3.5/10
P/E RatioValuation
26.9x4/10

Moderate valuation

Revenue GrowthGrowth
1.5%4/10

1.5% revenue growth

Debt/EquityHealth
1.373/10

Elevated debt levels

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

RLJ4 concerns · Avg: 3.3/10
PEG RatioValuation
2.064/10

Expensive relative to growth rate

Market CapQuality
$1.66B3/10

Smaller company, higher risk/reward

Return on EquityProfitability
1.1%3/10

ROE of 1.1% — below average capital efficiency

Profit MarginProfitability
2.0%3/10

2.0% margin — thin

Comparative Analysis Report

WallStSmart Research

Bull Case : CUBE

The strongest argument for CUBE centers on Operating Margin, Profit Margin. Profitability is solid with margins at 29.3% and operating margin at 41.1%.

Bull Case : RLJ

The strongest argument for RLJ centers on Price/Book.

Bear Case : CUBE

The primary concerns for CUBE are P/E Ratio, Revenue Growth, Debt/Equity.

Bear Case : RLJ

The primary concerns for RLJ are PEG Ratio, Market Cap, Return on Equity. A P/E of 1087.0x leaves little room for execution misses. Thin 2.0% margins leave little buffer for downturns.

Key Dynamics to Monitor

RLJ carries more volatility with a beta of 1.09 — expect wider price swings.

RLJ is growing revenue faster at 5.6% — sustainability is the question.

CUBE generates stronger free cash flow (109M), providing more financial flexibility.

Monitor REIT - INDUSTRIAL industry trends, competitive dynamics, and regulatory changes.

Bottom Line

CUBE scores higher overall (56/100 vs 53/100), backed by strong 29.3% margins. RLJ offers better value entry with a 55.7% margin of safety. Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

CubeSmart

REAL ESTATE · REIT - INDUSTRIAL · USA

CubeSmart is a self-managed and self-managed real estate investment trust.

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RLJ Lodging Trust

REAL ESTATE · REIT - HOTEL & MOTEL · USA

RLJ Lodging Trust is a publicly traded and publicly traded real estate investment trust primarily owning premium brand, high margin, focused service and compact full service hotels.

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