Digital Realty Trust Inc (DLR)vsService Properties Trust (SVC)
DLR
Digital Realty Trust Inc
$200.94
+3.28%
REAL ESTATE · Cap: $71.36B
SVC
Service Properties Trust
$1.55
+3.33%
REAL ESTATE · Cap: $994.19M
Smart Verdict
WallStSmart Research — data-driven comparison
Digital Realty Trust Inc generates 248% more annual revenue ($6.31B vs $1.81B). DLR leads profitability with a 21.8% profit margin vs -11.2%. SVC appears more attractively valued with a PEG of 2.27. DLR earns a higher WallStSmart Score of 61/100 (C+).
DLR
Buy61
out of 100
Grade: C+
SVC
Hold37
out of 100
Grade: F
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
+77.8%
Fair Value
$10.36
Current Price
$1.55
$8.81 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
Reasonable price relative to book value
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
Expensive relative to growth rate
Smaller company, higher risk/reward
ROE of -27.0% — below average capital efficiency
Revenue declined 12.9%
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 : SVC
The strongest argument for SVC 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 : SVC
The primary concerns for SVC are PEG Ratio, Market Cap, Return on Equity.
Key Dynamics to Monitor
DLR profiles as a growth stock while SVC is a turnaround play — different risk/reward profiles.
SVC carries more volatility with a beta of 1.58 — expect wider price swings.
DLR is growing revenue faster at 16.7% — sustainability is the question.
SVC generates stronger free cash flow (-95M), providing more financial flexibility.
Bottom Line
DLR scores higher overall (61/100 vs 37/100), backed by strong 21.8% margins and 16.7% revenue growth. SVC offers better value entry with a 77.8% 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.
Visit Website →Service Properties Trust
REAL ESTATE · REIT - HOTEL & MOTEL · USA
Service Properties Trust is a real estate investment trust, or REIT, that owns a diverse portfolio of hotel and net-leasing services and need-based retail properties in the United States and in Puerto Rico and Canada with 149 different brands across 23 industries. The company is headquartered in Newton, Massachusetts.
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