WallStSmart

Digital Realty Trust Inc (DLR)vsTE Connectivity Ltd (TEL)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

TE Connectivity Ltd generates 196% more annual revenue ($18.70B vs $6.31B). DLR leads profitability with a 21.8% profit margin vs 15.5%. TEL appears more attractively valued with a PEG of 1.06. TEL earns a higher WallStSmart Score of 76/100 (B+).

DLR

Buy

61

out of 100

Grade: C+

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

TEL

Strong Buy

76

out of 100

Grade: B+

Growth: 6.7Profit: 8.0Value: 4.7Quality: 5.0
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
TELSignificantly Overvalued (-61.1%)

Margin of Safety

-61.1%

Fair Value

$141.82

Current Price

$205.25

$63.43 premium

UndervaluedFair: $141.82Overvalued

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

TEL4 strengths · Avg: 9.0/10
EPS GrowthGrowth
7150.0%10/10

Earnings expanding 7150.0% YoY

Market CapQuality
$61.78B9/10

Large-cap with strong market position

Return on EquityProfitability
22.7%9/10

Every $100 of equity generates 23 in profit

Operating MarginProfitability
20.3%8/10

Strong operational efficiency at 20.3%

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

TEL0 concerns · Avg: 0/10

No major concerns identified

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 : TEL

The strongest argument for TEL centers on EPS Growth, Market Cap, Return on Equity. Profitability is solid with margins at 15.5% and operating margin at 20.3%. Revenue growth of 14.5% 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 : TEL

No major red flags identified for TEL, but monitor valuation.

Key Dynamics to Monitor

DLR profiles as a growth stock while TEL is a mature play — different risk/reward profiles.

TEL carries more volatility with a beta of 1.26 — expect wider price swings.

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

TEL generates stronger free cash flow (677M), providing more financial flexibility.

Bottom Line

TEL scores higher overall (76/100 vs 61/100), backed by strong 15.5% margins and 14.5% 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 →

TE Connectivity Ltd

TECHNOLOGY · ELECTRONIC COMPONENTS · USA

TE Connectivity is an American Swiss-domiciled technology company that designs and manufactures connectors and sensors for several industries, such as automotive, industrial equipment, data communication systems, aerospace, defense, medical, oil and gas, consumer electronics and energy.

Want to dig deeper into these stocks?