WallStSmart

Digital Realty Trust Inc (DLR)vsNovartis AG ADR (NVS)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Novartis AG ADR generates 798% more annual revenue ($56.67B vs $6.31B). NVS leads profitability with a 24.7% profit margin vs 21.8%. NVS appears more attractively valued with a PEG of 2.53. DLR earns a higher WallStSmart Score of 59/100 (C).

DLR

Buy

59

out of 100

Grade: C

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

NVS

Buy

51

out of 100

Grade: C-

Growth: 4.0Profit: 9.0Value: 3.3Quality: 5.5
Piotroski: 4/9Altman Z: 1.96
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
NVSSignificantly Overvalued (-52.2%)

Margin of Safety

-52.2%

Fair Value

$109.78

Current Price

$147.85

$38.07 premium

UndervaluedFair: $109.78Overvalued

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
$69.78B9/10

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

NVS5 strengths · Avg: 9.0/10
Market CapQuality
$280.79B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
30.8%10/10

Every $100 of equity generates 31 in profit

Profit MarginProfitability
24.7%9/10

Keeps 25 of every $100 in revenue as profit

Operating MarginProfitability
27.8%8/10

Strong operational efficiency at 27.8%

Free Cash FlowQuality
$1.64B8/10

Generating 1.6B in free cash flow

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
18.672/10

Expensive relative to growth rate

P/E RatioValuation
52.9x2/10

Premium valuation, high expectations priced in

NVS4 concerns · Avg: 3.0/10
Revenue GrowthGrowth
2.2%4/10

2.2% revenue growth

Altman Z-ScoreHealth
1.964/10

Grey zone — moderate risk

PEG RatioValuation
2.532/10

Expensive relative to growth rate

EPS GrowthGrowth
-11.6%2/10

Earnings declined 11.6%

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 : NVS

The strongest argument for NVS centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 24.7% and operating margin at 27.8%.

Bear Case : DLR

The primary concerns for DLR are Return on Equity, Debt/Equity, PEG Ratio. A P/E of 52.9x leaves little room for execution misses.

Bear Case : NVS

The primary concerns for NVS are Revenue Growth, Altman Z-Score, PEG Ratio.

Key Dynamics to Monitor

DLR profiles as a growth stock while NVS 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.

NVS generates stronger free cash flow (1.6B), providing more financial flexibility.

Bottom Line

DLR scores higher overall (59/100 vs 51/100), 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.

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Novartis AG ADR

HEALTHCARE · DRUG MANUFACTURERS - GENERAL · USA

Novartis AG researches, develops, manufactures and markets medical devices worldwide. The company is headquartered in Basel, Switzerland.

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