WallStSmart

Digital Realty Trust Inc (DLR)vsKennedy-Wilson Holdings Inc (KW)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Digital Realty Trust Inc generates 1064% more annual revenue ($6.31B vs $542.50M). DLR leads profitability with a 21.8% profit margin vs 0.9%. KW appears more attractively valued with a PEG of 1.10. DLR earns a higher WallStSmart Score of 61/100 (C+).

DLR

Buy

61

out of 100

Grade: C+

Growth: 8.0Profit: 6.0Value: 2.0Quality: 5.5
Piotroski: 5/9Altman Z: 0.75

KW

Hold

39

out of 100

Grade: F

Growth: 2.0Profit: 4.5Value: 7.0Quality: 4.0
Piotroski: 6/9Altman Z: 0.29
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

DLRSignificantly Overvalued (-31.8%)

Margin of Safety

-31.8%

Fair Value

$132.50

Current Price

$194.56

$62.06 premium

UndervaluedFair: $132.50Overvalued
KWUndervalued (+79.0%)

Margin of Safety

+79.0%

Fair Value

$46.50

Current Price

$10.90

$35.60 discount

UndervaluedFair: $46.50Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

DLR5 strengths · Avg: 8.8/10
EPS GrowthGrowth
69.4%10/10

Earnings expanding 69.4% YoY

Market CapQuality
$71.36B9/10

Large-cap with strong market position

Profit MarginProfitability
21.8%9/10

Keeps 22 of every $100 in revenue as profit

Price/BookValuation
3.0x8/10

Reasonable price relative to book value

Revenue GrowthGrowth
16.7%8/10

16.7% revenue growth

KW1 strengths · Avg: 8.0/10
Price/BookValuation
2.0x8/10

Reasonable price relative to book value

Areas to Watch

DLR4 concerns · Avg: 2.5/10
Return on EquityProfitability
5.7%3/10

ROE of 5.7% — below average capital efficiency

Debt/EquityHealth
1.053/10

Elevated debt levels

PEG RatioValuation
12.572/10

Expensive relative to growth rate

P/E RatioValuation
53.2x2/10

Premium valuation, high expectations priced in

KW4 concerns · Avg: 2.8/10
Market CapQuality
$1.51B3/10

Smaller company, higher risk/reward

Return on EquityProfitability
1.5%3/10

ROE of 1.5% — below average capital efficiency

Profit MarginProfitability
0.9%3/10

0.9% margin — thin

Revenue GrowthGrowth
-5.7%2/10

Revenue declined 5.7%

Comparative Analysis Report

WallStSmart Research

Bull Case : DLR

The strongest argument for DLR centers on EPS Growth, Market Cap, Profit Margin. Profitability is solid with margins at 21.8% and operating margin at 17.4%. Revenue growth of 16.7% demonstrates continued momentum.

Bull Case : KW

The strongest argument for KW centers on Price/Book. PEG of 1.10 suggests the stock is reasonably priced for its growth.

Bear Case : DLR

The primary concerns for DLR are Return on Equity, Debt/Equity, PEG Ratio. A P/E of 53.2x leaves little room for execution misses.

Bear Case : KW

The primary concerns for KW are Market Cap, Return on Equity, Profit Margin. Debt-to-equity of 3.02 is elevated, increasing financial risk. Thin 0.9% margins leave little buffer for downturns.

Key Dynamics to Monitor

DLR profiles as a growth stock while KW is a value play — different risk/reward profiles.

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

DLR is growing revenue faster at 16.7% — sustainability is the question.

KW generates stronger free cash flow (52M), providing more financial flexibility.

Bottom Line

DLR scores higher overall (61/100 vs 39/100), backed by strong 21.8% margins and 16.7% revenue growth. KW offers better value entry with a 79.0% 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.

Digital Realty Trust Inc

REAL ESTATE · REIT - SPECIALTY · USA

Digital Realty Trust, Inc. is a real estate investment trust that invests in carrier-neutral data centers and provides colocation and peering services.

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Kennedy-Wilson Holdings Inc

REAL ESTATE · REAL ESTATE SERVICES · USA

Kennedy-Wilson Holdings, Inc. is a real estate investment company. The company is headquartered in Beverly Hills, California.

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