WallStSmart

CubeSmart (CUBE)vsRLJ Lodging Trust (RLJ)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

RLJ Lodging Trust generates 20% more annual revenue ($1.36B vs $1.14B). CUBE leads profitability with a 29.3% profit margin vs 1.8%. RLJ appears more attractively valued with a PEG of 2.06. CUBE earns a higher WallStSmart Score of 53/100 (C-).

CUBE

Buy

53

out of 100

Grade: C-

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

RLJ

Hold

42

out of 100

Grade: D

Growth: 3.3Profit: 4.5Value: 6.3Quality: 3.5
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

$52.82

Current Price

$41.95

$10.87 discount

UndervaluedFair: $52.82Overvalued
RLJUndervalued (+55.6%)

Margin of Safety

+55.6%

Fair Value

$18.93

Current Price

$12.32

$6.61 discount

UndervaluedFair: $18.93Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CUBE2 strengths · Avg: 9.5/10
Operating MarginProfitability
41.0%10/10

Strong operational efficiency at 41.0%

Profit MarginProfitability
29.3%9/10

Keeps 29 of every $100 in revenue as profit

RLJ1 strengths · Avg: 10.0/10
Price/BookValuation
1.0x10/10

Reasonable price relative to book value

Areas to Watch

CUBE4 concerns · Avg: 3.5/10
P/E RatioValuation
28.8x4/10

Moderate valuation

Revenue GrowthGrowth
1.3%4/10

1.3% revenue growth

Debt/EquityHealth
1.323/10

Elevated debt levels

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

RLJ4 concerns · Avg: 3.5/10
PEG RatioValuation
2.064/10

Expensive relative to growth rate

Revenue GrowthGrowth
3.6%4/10

3.6% revenue growth

Market CapQuality
$1.88B3/10

Smaller company, higher risk/reward

Return on EquityProfitability
1.1%3/10

ROE of 1.1% — below average capital efficiency

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 41.0%.

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, Revenue Growth, Market Cap. Thin 1.8% margins leave little buffer for downturns.

Key Dynamics to Monitor

RLJ carries more volatility with a beta of 1.11 — expect wider price swings.

RLJ is growing revenue faster at 3.6% — sustainability is the question.

CUBE generates stronger free cash flow (149M), providing more financial flexibility.

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

Bottom Line

CUBE scores higher overall (53/100 vs 42/100), backed by strong 29.3% margins. RLJ offers better value entry with a 55.6% margin of safety. Both earn "Buy" and "Hold" 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.

Visit Website →

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