Digital Realty Trust Inc (DLR)vsServiceNow Inc (NOW)
DLR
Digital Realty Trust Inc
$194.56
-0.01%
REAL ESTATE · Cap: $71.36B
NOW
ServiceNow Inc
$88.89
-0.65%
TECHNOLOGY · Cap: $91.07B
Smart Verdict
WallStSmart Research — data-driven comparison
ServiceNow Inc generates 121% more annual revenue ($13.96B vs $6.31B). DLR leads profitability with a 21.8% profit margin vs 12.6%. NOW appears more attractively valued with a PEG of 0.86. DLR earns a higher WallStSmart Score of 61/100 (C+).
DLR
Buy61
out of 100
Grade: C+
NOW
Buy59
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-31.8%
Fair Value
$132.50
Current Price
$194.56
$62.06 premium
Margin of Safety
+86.1%
Fair Value
$636.49
Current Price
$88.89
$547.60 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Earnings expanding 69.4% YoY
Large-cap with strong market position
Keeps 22 of every $100 in revenue as profit
Reasonable price relative to book value
16.7% revenue growth
Large-cap with strong market position
Growing faster than its price suggests
Revenue surging 22.1% year-over-year
Generating 1.5B in free cash flow
Areas to Watch
ROE of 5.7% — below average capital efficiency
Elevated debt levels
Expensive relative to growth rate
Premium valuation, high expectations priced in
2.3% earnings growth
Distress zone — elevated risk
Weak financial health signals
Premium valuation, high expectations priced in
Comparative Analysis Report
WallStSmart ResearchBull 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 : NOW
The strongest argument for NOW centers on Market Cap, PEG Ratio, Revenue Growth. Revenue growth of 22.1% demonstrates continued momentum. PEG of 0.86 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 : NOW
The primary concerns for NOW are EPS Growth, Altman Z-Score, Piotroski F-Score. A P/E of 52.6x leaves little room for execution misses.
Key Dynamics to Monitor
DLR carries more volatility with a beta of 1.09 — expect wider price swings.
NOW is growing revenue faster at 22.1% — sustainability is the question.
NOW generates stronger free cash flow (1.5B), 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. NOW offers better value entry with a 86.1% 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.
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 →ServiceNow Inc
TECHNOLOGY · SOFTWARE - APPLICATION · USA
ServiceNow is an American software company based in Santa Clara, California that develops a cloud computing platform to help companies manage digital workflows for enterprise operations.
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