Digital Realty Trust Inc (DLR)vsNexpoint Real Estate Finance Inc (NREF)
DLR
Digital Realty Trust Inc
$199.68
+1.52%
REAL ESTATE · Cap: $71.27B
NREF
Nexpoint Real Estate Finance Inc
$15.51
+1.51%
REAL ESTATE · Cap: $349.50M
Smart Verdict
WallStSmart Research — data-driven comparison
Digital Realty Trust Inc generates 3957% more annual revenue ($6.31B vs $155.63M). NREF leads profitability with a 66.5% profit margin vs 21.8%. NREF trades at a lower P/E of 5.4x. DLR earns a higher WallStSmart Score of 59/100 (C).
DLR
Buy59
out of 100
Grade: C
NREF
Buy58
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-31.3%
Fair Value
$132.99
Current Price
$199.68
$66.69 premium
Margin of Safety
+74.7%
Fair Value
$58.79
Current Price
$15.51
$43.28 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
16.7% revenue growth
Attractively priced relative to earnings
Reasonable price relative to book value
Keeps 67 of every $100 in revenue as profit
Strong operational efficiency at 69.4%
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
Smaller company, higher risk/reward
Revenue declined 4.8%
Earnings declined 39.6%
Distress zone — elevated risk
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 : NREF
The strongest argument for NREF centers on P/E Ratio, Price/Book, Profit Margin. Profitability is solid with margins at 66.5% and operating margin at 69.4%.
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 : NREF
The primary concerns for NREF are Market Cap, Revenue Growth, EPS Growth. Debt-to-equity of 11.92 is elevated, increasing financial risk.
Key Dynamics to Monitor
DLR profiles as a growth stock while NREF is a declining play — different risk/reward profiles.
NREF carries more volatility with a beta of 1.15 — expect wider price swings.
DLR is growing revenue faster at 16.7% — sustainability is the question.
Monitor REIT - SPECIALTY industry trends, competitive dynamics, and regulatory changes.
Bottom Line
DLR scores higher overall (59/100 vs 58/100), backed by strong 21.8% margins and 16.7% revenue growth. NREF offers better value entry with a 74.7% 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 →Nexpoint Real Estate Finance Inc
REAL ESTATE · REIT - MORTGAGE · USA
NexPoint Real Estate Finance, Inc. is a real estate finance company in the United States. The company is headquartered in Dallas, Texas.
Visit Website →Compare with Other REIT - SPECIALTY Stocks
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