WallStSmart

Digital Realty Trust Inc (DLR)vsPennyMac Mortgage Investment Trust (PMT)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Digital Realty Trust Inc generates 1022% more annual revenue ($6.76B vs $602.22M). PMT leads profitability with a 27.6% profit margin vs 11.8%. PMT appears more attractively valued with a PEG of 0.76. PMT earns a higher WallStSmart Score of 66/100 (B-).

DLR

Hold

49

out of 100

Grade: D+

Growth: 5.3Profit: 6.0Value: 2.0Quality: 4.8
Piotroski: 5/9Altman Z: 0.75

PMT

Strong Buy

66

out of 100

Grade: B-

Growth: 5.0Profit: 6.5Value: 9.3Quality: 3.3
Piotroski: 3/9
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

DLRSignificantly Overvalued (-49.4%)

Margin of Safety

-49.4%

Fair Value

$116.88

Current Price

$193.80

$76.92 premium

UndervaluedFair: $116.88Overvalued
PMTUndervalued (+74.8%)

Margin of Safety

+74.8%

Fair Value

$49.06

Current Price

$9.65

$39.41 discount

UndervaluedFair: $49.06Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

DLR4 strengths · Avg: 8.3/10
Market CapQuality
$72.97B9/10

Large-cap with strong market position

Price/BookValuation
2.7x8/10

Reasonable price relative to book value

Operating MarginProfitability
25.9%8/10

Strong operational efficiency at 25.9%

Revenue GrowthGrowth
29.9%8/10

Revenue surging 29.9% year-over-year

PMT5 strengths · Avg: 9.0/10
P/E RatioValuation
8.1x10/10

Attractively priced relative to earnings

Price/BookValuation
0.6x10/10

Reasonable price relative to book value

Profit MarginProfitability
27.6%9/10

Keeps 28 of every $100 in revenue as profit

PEG RatioValuation
0.768/10

Growing faster than its price suggests

Operating MarginProfitability
20.8%8/10

Strong operational efficiency at 20.8%

Areas to Watch

DLR4 concerns · Avg: 2.3/10
Return on EquityProfitability
2.9%3/10

ROE of 2.9% — below average capital efficiency

PEG RatioValuation
13.652/10

Expensive relative to growth rate

P/E RatioValuation
245.4x2/10

Premium valuation, high expectations priced in

EPS GrowthGrowth
-58.7%2/10

Earnings declined 58.7%

PMT4 concerns · Avg: 2.8/10
Market CapQuality
$822.32M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
7.7%3/10

ROE of 7.7% — below average capital efficiency

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Revenue GrowthGrowth
-50.5%2/10

Revenue declined 50.5%

Comparative Analysis Report

WallStSmart Research

Bull Case : DLR

The strongest argument for DLR centers on Market Cap, Price/Book, Operating Margin. Revenue growth of 29.9% demonstrates continued momentum.

Bull Case : PMT

The strongest argument for PMT centers on P/E Ratio, Price/Book, Profit Margin. Profitability is solid with margins at 27.6% and operating margin at 20.8%. PEG of 0.76 suggests the stock is reasonably priced for its growth.

Bear Case : DLR

The primary concerns for DLR are Return on Equity, PEG Ratio, P/E Ratio. A P/E of 245.4x leaves little room for execution misses.

Bear Case : PMT

The primary concerns for PMT are Market Cap, Return on Equity, Piotroski F-Score. Debt-to-equity of 10.87 is elevated, increasing financial risk.

Key Dynamics to Monitor

DLR profiles as a growth stock while PMT is a declining play — different risk/reward profiles.

PMT carries more volatility with a beta of 1.12 — expect wider price swings.

DLR is growing revenue faster at 29.9% — sustainability is the question.

DLR generates stronger free cash flow (532M), providing more financial flexibility.

Bottom Line

PMT scores higher overall (66/100 vs 49/100), backed by strong 27.6% margins. Both earn "Strong 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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PennyMac Mortgage Investment Trust

REAL ESTATE · REIT - MORTGAGE · USA

PennyMac Mortgage Investment Trust, a specialty finance company, invests primarily in mortgage-related assets in the United States. The company is headquartered in Westlake Village, California.

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