Digital Realty Trust Inc (DLR)vsRithm Capital Corp. (RITM)
DLR
Digital Realty Trust Inc
$200.94
+3.28%
REAL ESTATE · Cap: $71.36B
RITM
Rithm Capital Corp.
$9.66
-1.93%
REAL ESTATE · Cap: $5.39B
Smart Verdict
WallStSmart Research — data-driven comparison
Digital Realty Trust Inc generates 56% more annual revenue ($6.31B vs $4.05B). DLR leads profitability with a 21.8% profit margin vs 17.8%. RITM trades at a lower P/E of 8.9x. RITM earns a higher WallStSmart Score of 71/100 (B).
DLR
Buy61
out of 100
Grade: C+
RITM
Strong Buy71
out of 100
Grade: B
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-31.8%
Fair Value
$132.50
Current Price
$200.94
$68.44 premium
Margin of Safety
+85.0%
Fair Value
$71.08
Current Price
$9.66
$61.42 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
Revenue surging 38.7% year-over-year
Earnings expanding 72.2% 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
Weak financial health signals
Negative free cash flow — burning cash
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 : RITM
The strongest argument for RITM centers on P/E Ratio, Price/Book, Revenue Growth. Profitability is solid with margins at 17.8% and operating margin at 16.1%. Revenue growth of 38.7% demonstrates continued momentum.
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 : RITM
The primary concerns for RITM are Piotroski F-Score, Free Cash Flow, Altman Z-Score.
Key Dynamics to Monitor
RITM carries more volatility with a beta of 1.19 — expect wider price swings.
RITM is growing revenue faster at 38.7% — sustainability is the question.
RITM generates stronger free cash flow (-116M), providing more financial flexibility.
Monitor REIT - SPECIALTY industry trends, competitive dynamics, and regulatory changes.
Bottom Line
RITM scores higher overall (71/100 vs 61/100), backed by strong 17.8% margins and 38.7% revenue growth. Both earn "Strong 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 →Rithm Capital Corp.
REAL ESTATE · REIT - MORTGAGE · USA
Rhythm Capital Corp. The company is headquartered in New York, New York.
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