WallStSmart

Digital Realty Trust Inc (DLR)vsTwo Harbors Investments Corp (TWO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Digital Realty Trust Inc generates 955% more annual revenue ($6.76B vs $640.21M). DLR leads profitability with a 11.8% profit margin vs -3.4%. TWO appears more attractively valued with a PEG of 2.76. TWO earns a higher WallStSmart Score of 55/100 (C).

DLR

Hold

49

out of 100

Grade: D+

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

TWO

Buy

55

out of 100

Grade: C

Growth: 7.3Profit: 4.0Value: 4.0Quality: 3.3
Piotroski: 2/9
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

Intrinsic value data unavailable for TWO.

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

TWO3 strengths · Avg: 10.0/10
Price/BookValuation
1.1x10/10

Reasonable price relative to book value

Operating MarginProfitability
48.1%10/10

Strong operational efficiency at 48.1%

Revenue GrowthGrowth
620.0%10/10

Revenue surging 620.0% year-over-year

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%

TWO4 concerns · Avg: 2.5/10
Market CapQuality
$1.27B3/10

Smaller company, higher risk/reward

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

PEG RatioValuation
2.762/10

Expensive relative to growth rate

Return on EquityProfitability
-19.8%2/10

ROE of -19.8% — below average capital efficiency

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 : TWO

The strongest argument for TWO centers on Price/Book, Operating Margin, Revenue Growth. Revenue growth of 620.0% demonstrates continued momentum.

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 : TWO

The primary concerns for TWO are Market Cap, Piotroski F-Score, PEG Ratio. Debt-to-equity of 4.79 is elevated, increasing financial risk.

Key Dynamics to Monitor

DLR profiles as a growth stock while TWO is a hypergrowth play — different risk/reward profiles.

TWO carries more volatility with a beta of 1.05 — expect wider price swings.

TWO is growing revenue faster at 620.0% — sustainability is the question.

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

Bottom Line

TWO scores higher overall (55/100 vs 49/100) and 620.0% revenue growth. 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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Two Harbors Investments Corp

REAL ESTATE · REIT - MORTGAGE · USA

Two Harbors Investment Corp. The company is headquartered in Minnetonka, Minnesota.

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