WallStSmart

Digital Realty Trust Inc (DLR)vsNewmark Group Inc (NMRK)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Digital Realty Trust Inc generates 82% more annual revenue ($6.31B vs $3.48B). DLR leads profitability with a 21.8% profit margin vs 4.3%. NMRK trades at a lower P/E of 18.7x. 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

NMRK

Buy

59

out of 100

Grade: C

Growth: 8.0Profit: 4.5Value: 5.0Quality: 5.5
Piotroski: 4/9Altman Z: 1.77
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
NMRKOvervalued (-12.7%)

Margin of Safety

-12.7%

Fair Value

$13.27

Current Price

$14.61

$1.34 premium

UndervaluedFair: $13.27Overvalued

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

NMRK3 strengths · Avg: 8.7/10
EPS GrowthGrowth
146.9%10/10

Earnings expanding 146.9% YoY

Price/BookValuation
1.9x8/10

Reasonable price relative to book value

Revenue GrowthGrowth
27.2%8/10

Revenue surging 27.2% year-over-year

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

NMRK4 concerns · Avg: 3.3/10
Altman Z-ScoreHealth
1.774/10

Distress zone — elevated risk

Profit MarginProfitability
4.3%3/10

4.3% margin — thin

Operating MarginProfitability
3.5%3/10

Operating margin of 3.5%

Debt/EquityHealth
1.403/10

Elevated debt levels

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 : NMRK

The strongest argument for NMRK centers on EPS Growth, Price/Book, Revenue Growth. Revenue growth of 27.2% demonstrates continued momentum.

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 : NMRK

The primary concerns for NMRK are Altman Z-Score, Profit Margin, Operating Margin. Thin 4.3% margins leave little buffer for downturns.

Key Dynamics to Monitor

NMRK carries more volatility with a beta of 1.70 — expect wider price swings.

NMRK is growing revenue faster at 27.2% — sustainability is the question.

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

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

Bottom Line

DLR scores higher overall (61/100 vs 59/100), backed by strong 21.8% margins and 16.7% revenue growth. 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.

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.

Visit Website →

Newmark Group Inc

REAL ESTATE · REAL ESTATE SERVICES · USA

Newmark Group, Inc. provides commercial real estate services in the United States and internationally. The company is headquartered in New York, New York.

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