WallStSmart

Digital Realty Trust Inc (DLR)vsMFA Financial Inc (MFA)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Digital Realty Trust Inc generates 2091% more annual revenue ($6.31B vs $288.15M). MFA leads profitability with a 46.7% profit margin vs 21.8%. MFA appears more attractively valued with a PEG of 2.48. DLR earns a higher WallStSmart Score of 61/100 (C+).

DLR

Buy

61

out of 100

Grade: C+

Growth: 8.0Profit: 6.0Value: 2.7Quality: 4.0
Piotroski: 5/9Altman Z: 0.75

MFA

Hold

47

out of 100

Grade: D+

Growth: 3.0Profit: 5.0Value: 8.0Quality: 5.8
Piotroski: 4/9
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

DLRSignificantly Overvalued (-52.8%)

Margin of Safety

-52.8%

Fair Value

$114.22

Current Price

$186.79

$72.57 premium

UndervaluedFair: $114.22Overvalued
MFAUndervalued (+48.2%)

Margin of Safety

+48.2%

Fair Value

$18.75

Current Price

$9.15

$9.60 discount

UndervaluedFair: $18.75Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

DLR5 strengths · Avg: 8.8/10
EPS GrowthGrowth
67.6%10/10

Earnings expanding 67.6% YoY

Market CapQuality
$66.98B9/10

Large-cap with strong market position

Profit MarginProfitability
21.8%9/10

Keeps 22 of every $100 in revenue as profit

Price/BookValuation
2.9x8/10

Reasonable price relative to book value

Revenue GrowthGrowth
16.7%8/10

16.7% revenue growth

MFA3 strengths · Avg: 10.0/10
P/E RatioValuation
10.6x10/10

Attractively priced relative to earnings

Price/BookValuation
0.5x10/10

Reasonable price relative to book value

Profit MarginProfitability
46.7%10/10

Keeps 47 of every $100 in revenue as profit

Areas to Watch

DLR4 concerns · Avg: 2.3/10
Return on EquityProfitability
5.9%3/10

ROE of 5.9% — below average capital efficiency

PEG RatioValuation
12.472/10

Expensive relative to growth rate

P/E RatioValuation
49.8x2/10

Premium valuation, high expectations priced in

Altman Z-ScoreHealth
0.752/10

Distress zone — elevated risk

MFA4 concerns · Avg: 3.0/10
PEG RatioValuation
2.484/10

Expensive relative to growth rate

Market CapQuality
$947.43M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
7.6%3/10

ROE of 7.6% — below average capital efficiency

Revenue GrowthGrowth
-46.5%2/10

Revenue declined 46.5%

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 17.2%. Revenue growth of 16.7% demonstrates continued momentum.

Bull Case : MFA

The strongest argument for MFA centers on P/E Ratio, Price/Book, Profit Margin. Profitability is solid with margins at 46.7% and operating margin at -2.3%.

Bear Case : DLR

The primary concerns for DLR are Return on Equity, PEG Ratio, P/E Ratio. A P/E of 49.8x leaves little room for execution misses.

Bear Case : MFA

The primary concerns for MFA are PEG Ratio, Market Cap, Return on Equity. Debt-to-equity of 3.65 is elevated, increasing financial risk.

Key Dynamics to Monitor

DLR profiles as a growth stock while MFA is a declining play — different risk/reward profiles.

MFA carries more volatility with a beta of 1.50 — expect wider price swings.

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

DLR generates stronger free cash flow (532M), providing more financial flexibility.

Bottom Line

DLR scores higher overall (61/100 vs 47/100), backed by strong 21.8% margins and 16.7% revenue growth. MFA offers better value entry with a 48.2% 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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MFA Financial Inc

REAL ESTATE · REIT - MORTGAGE · USA

MFA Financial, Inc., is a real estate investment trust (REIT) in the United States. The company is headquartered in New York, New York.

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