WallStSmart

Digital Realty Trust Inc (DLR)vsWelltower Inc (WELL)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Welltower Inc generates 86% more annual revenue ($10.84B vs $5.84B). DLR leads profitability with a 24.0% profit margin vs 8.6%. WELL appears more attractively valued with a PEG of 3.62. DLR earns a higher WallStSmart Score of 59/100 (C).

DLR

Buy

59

out of 100

Grade: C

Growth: 7.3Profit: 5.5Value: 6.0Quality: 7.0
Piotroski: 5/9Altman Z: 0.75

WELL

Hold

39

out of 100

Grade: F

Growth: 7.3Profit: 4.0Value: 2.0Quality: 7.5
Piotroski: 4/9Altman Z: 1.20
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

DLRUndervalued (+3.4%)

Margin of Safety

+3.4%

Fair Value

$180.65

Current Price

$176.43

$4.22 discount

UndervaluedFair: $180.65Overvalued
WELLSignificantly Overvalued (-2052.0%)

Margin of Safety

-2052.0%

Fair Value

$9.66

Current Price

$196.73

$187.07 premium

UndervaluedFair: $9.66Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

DLR4 strengths · Avg: 9.0/10
EPS GrowthGrowth
60.3%10/10

Earnings expanding 60.3% YoY

Market CapQuality
$55.29B9/10

Large-cap with strong market position

Profit MarginProfitability
24.0%9/10

Keeps 24 of every $100 in revenue as profit

Price/BookValuation
2.7x8/10

Reasonable price relative to book value

WELL2 strengths · Avg: 9.5/10
Revenue GrowthGrowth
41.3%10/10

Revenue surging 41.3% year-over-year

Market CapQuality
$137.19B9/10

Large-cap with strong market position

Areas to Watch

DLR4 concerns · Avg: 2.5/10
Return on EquityProfitability
5.8%3/10

ROE of 5.8% — below average capital efficiency

Debt/EquityHealth
1.053/10

Elevated debt levels

PEG RatioValuation
16.182/10

Expensive relative to growth rate

P/E RatioValuation
41.0x2/10

Premium valuation, high expectations priced in

WELL4 concerns · Avg: 2.3/10
Return on EquityProfitability
2.5%3/10

ROE of 2.5% — below average capital efficiency

PEG RatioValuation
3.622/10

Expensive relative to growth rate

P/E RatioValuation
138.5x2/10

Premium valuation, high expectations priced in

EPS GrowthGrowth
-26.3%2/10

Earnings declined 26.3%

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 24.0% and operating margin at 13.3%. Revenue growth of 11.1% demonstrates continued momentum.

Bull Case : WELL

The strongest argument for WELL centers on Revenue Growth, Market Cap. Revenue growth of 41.3% demonstrates continued momentum.

Bear Case : DLR

The primary concerns for DLR are Return on Equity, Debt/Equity, PEG Ratio. A P/E of 41.0x leaves little room for execution misses.

Bear Case : WELL

The primary concerns for WELL are Return on Equity, PEG Ratio, P/E Ratio. A P/E of 138.5x leaves little room for execution misses.

Key Dynamics to Monitor

DLR profiles as a mature stock while WELL is a hypergrowth play — different risk/reward profiles.

DLR carries more volatility with a beta of 1.12 — expect wider price swings.

WELL is growing revenue faster at 41.3% — sustainability is the question.

WELL generates stronger free cash flow (647M), providing more financial flexibility.

Bottom Line

DLR scores higher overall (59/100 vs 39/100), backed by strong 24.0% margins and 11.1% 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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Welltower Inc

REAL ESTATE · REIT - HEALTHCARE FACILITIES · USA

Welltower Inc. is a real estate investment trust that invests in healthcare infrastructure.

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