WallStSmart

Digital Realty Trust Inc (DLR)vsPebblebrook Hotel Trust (PEB)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Digital Realty Trust Inc generates 328% more annual revenue ($6.31B vs $1.48B). DLR leads profitability with a 21.8% profit margin vs -4.5%. PEB appears more attractively valued with a PEG of 3.21. DLR earns a higher WallStSmart Score of 61/100 (C+).

DLR

Buy

61

out of 100

Grade: C+

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

PEB

Hold

39

out of 100

Grade: F

Growth: 3.3Profit: 3.0Value: 5.7Quality: 3.5
Piotroski: 4/9Altman Z: 0.50
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

DLRSignificantly Overvalued (-31.8%)

Margin of Safety

-31.8%

Fair Value

$132.50

Current Price

$200.94

$68.44 premium

UndervaluedFair: $132.50Overvalued
PEBUndervalued (+84.2%)

Margin of Safety

+84.2%

Fair Value

$81.59

Current Price

$14.05

$67.54 discount

UndervaluedFair: $81.59Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

DLR4 strengths · Avg: 9.0/10
EPS GrowthGrowth
69.4%10/10

Earnings expanding 69.4% YoY

Market CapQuality
$71.36B9/10

Large-cap with strong market position

Profit MarginProfitability
21.8%9/10

Keeps 22 of every $100 in revenue as profit

Revenue GrowthGrowth
16.7%8/10

16.7% revenue growth

PEB1 strengths · Avg: 10.0/10
Price/BookValuation
0.6x10/10

Reasonable price relative to book value

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
12.572/10

Expensive relative to growth rate

P/E RatioValuation
53.2x2/10

Premium valuation, high expectations priced in

PEB4 concerns · Avg: 3.3/10
Revenue GrowthGrowth
3.4%4/10

3.4% revenue growth

Market CapQuality
$1.62B3/10

Smaller company, higher risk/reward

Operating MarginProfitability
1.5%3/10

Operating margin of 1.5%

Debt/EquityHealth
1.023/10

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 17.4%. Revenue growth of 16.7% demonstrates continued momentum.

Bull Case : PEB

The strongest argument for PEB centers on Price/Book.

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 : PEB

The primary concerns for PEB are Revenue Growth, Market Cap, Operating Margin.

Key Dynamics to Monitor

DLR profiles as a growth stock while PEB is a turnaround play — different risk/reward profiles.

PEB carries more volatility with a beta of 1.43 — expect wider price swings.

DLR is growing revenue faster at 16.7% — sustainability is the question.

PEB generates stronger free cash flow (84M), providing more financial flexibility.

Bottom Line

DLR scores higher overall (61/100 vs 39/100), backed by strong 21.8% margins and 16.7% revenue growth. PEB offers better value entry with a 84.2% margin of safety. Both earn "Buy" and "Hold" 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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Pebblebrook Hotel Trust

REAL ESTATE · REIT - HOTEL & MOTEL · USA

Pebblebrook Hotel Trust (NYSE: PEB) is a publicly traded real estate investment trust (REIT) and the largest owner of urban and resort lifestyle hotels in the United States.

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