Digital Realty Trust Inc (DLR)vsRealty Income Corporation (O)
DLR
Digital Realty Trust Inc
$195.31
+0.27%
REAL ESTATE · Cap: $69.67B
O
Realty Income Corporation
$61.92
+0.21%
REAL ESTATE · Cap: $57.62B
Smart Verdict
WallStSmart Research — data-driven comparison
Digital Realty Trust Inc generates 10% more annual revenue ($6.31B vs $5.76B). DLR leads profitability with a 21.8% profit margin vs 18.4%. O appears more attractively valued with a PEG of 5.68. O earns a higher WallStSmart Score of 64/100 (C+).
DLR
Buy59
out of 100
Grade: C
O
Buy64
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-32.2%
Fair Value
$132.05
Current Price
$195.31
$63.26 premium
Margin of Safety
+1.8%
Fair Value
$65.71
Current Price
$61.92
$3.79 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Earnings expanding 67.6% YoY
Large-cap with strong market position
Keeps 22 of every $100 in revenue as profit
16.7% revenue growth
Reasonable price relative to book value
Strong operational efficiency at 47.0%
Large-cap with strong market position
Earnings expanding 41.2% YoY
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
ROE of 2.7% — below average capital efficiency
Weak financial health signals
Expensive relative to growth rate
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 17.2%. Revenue growth of 16.7% demonstrates continued momentum.
Bull Case : O
The strongest argument for O centers on Price/Book, Operating Margin, Market Cap. Profitability is solid with margins at 18.4% and operating margin at 47.0%. Revenue growth of 11.0% demonstrates continued momentum.
Bear Case : DLR
The primary concerns for DLR are Return on Equity, Debt/Equity, PEG Ratio. A P/E of 51.5x leaves little room for execution misses.
Bear Case : O
The primary concerns for O are Return on Equity, Piotroski F-Score, PEG Ratio. A P/E of 50.6x leaves little room for execution misses.
Key Dynamics to Monitor
DLR profiles as a growth stock while O is a mature play — different risk/reward profiles.
DLR carries more volatility with a beta of 1.08 — 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
O scores higher overall (64/100 vs 59/100), backed by strong 18.4% margins and 11.0% 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 →Realty Income Corporation
REAL ESTATE · REIT - RETAIL · USA
Realty Income Corporation is a real estate investment trust that invests in free-standing, single-tenant commercial properties in the United States, Puerto Rico, and the United Kingdom that are subject to NNN Leases. The company is organized in Maryland with its headquarters in San Diego, California.
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