WallStSmart

Digital Realty Trust Inc (DLR)vsStarbucks Corporation (SBUX)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Starbucks Corporation generates 497% more annual revenue ($37.70B vs $6.31B). DLR leads profitability with a 21.8% profit margin vs 3.6%. SBUX appears more attractively valued with a PEG of 1.68. 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

SBUX

Hold

39

out of 100

Grade: F

Growth: 4.0Profit: 5.0Value: 4.7Quality: 4.3
Piotroski: 2/9Altman Z: 1.07
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
SBUXUndervalued (+25.4%)

Margin of Safety

+25.4%

Fair Value

$132.83

Current Price

$105.50

$27.33 discount

UndervaluedFair: $132.83Overvalued

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
$71.36B9/10

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

SBUX2 strengths · Avg: 8.5/10
Market CapQuality
$120.20B9/10

Large-cap with strong market position

Free Cash FlowQuality
$1.27B8/10

Generating 1.3B 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
12.572/10

Expensive relative to growth rate

P/E RatioValuation
53.2x2/10

Premium valuation, high expectations priced in

SBUX4 concerns · Avg: 3.3/10
PEG RatioValuation
1.684/10

Expensive relative to growth rate

Return on EquityProfitability
0.0%3/10

ROE of 0.0% — below average capital efficiency

Profit MarginProfitability
3.6%3/10

3.6% margin — thin

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

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 : SBUX

The strongest argument for SBUX centers on Market Cap, Free Cash Flow.

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 : SBUX

The primary concerns for SBUX are PEG Ratio, Return on Equity, Profit Margin. A P/E of 80.5x leaves little room for execution misses. Thin 3.6% margins leave little buffer for downturns.

Key Dynamics to Monitor

DLR profiles as a growth stock while SBUX 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.

SBUX generates stronger free cash flow (1.3B), 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. SBUX offers better value entry with a 25.4% 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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Starbucks Corporation

CONSUMER CYCLICAL · RESTAURANTS · USA

Starbucks Corporation is an American multinational chain of coffeehouses and roastery reserves headquartered in Seattle, Washington. As the world's largest coffeehouse chain, Starbucks is seen to be the main representation of the United States' second wave of coffee culture.

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