WallStSmart

Digital Realty Trust Inc (DLR)vsWPP PLC ADR (WPP)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

WPP PLC ADR generates 115% more annual revenue ($13.55B vs $6.31B). DLR leads profitability with a 21.8% profit margin vs -1.6%. WPP appears more attractively valued with a PEG of 4.23. DLR earns a higher WallStSmart Score of 61/100 (C+).

DLR

Buy

61

out of 100

Grade: C+

Growth: 8.0Profit: 6.0Value: 2.7Quality: 4.0
Piotroski: 5/9Altman Z: 0.75

WPP

Avoid

34

out of 100

Grade: F

Growth: 2.0Profit: 4.0Value: 5.7Quality: 2.5
Piotroski: 3/9Altman Z: 0.73
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

DLRSignificantly Overvalued (-52.8%)

Margin of Safety

-52.8%

Fair Value

$114.22

Current Price

$186.79

$72.57 premium

UndervaluedFair: $114.22Overvalued
WPPUndervalued (+68.9%)

Margin of Safety

+68.9%

Fair Value

$58.87

Current Price

$17.70

$41.17 discount

UndervaluedFair: $58.87Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

DLR5 strengths · Avg: 8.8/10
EPS GrowthGrowth
67.6%10/10

Earnings expanding 67.6% YoY

Market CapQuality
$66.98B9/10

Large-cap with strong market position

Profit MarginProfitability
21.8%9/10

Keeps 22 of every $100 in revenue as profit

Price/BookValuation
2.9x8/10

Reasonable price relative to book value

Revenue GrowthGrowth
16.7%8/10

16.7% revenue growth

WPP1 strengths · Avg: 8.0/10
Free Cash FlowQuality
$1.71B8/10

Generating 1.7B in free cash flow

Areas to Watch

DLR4 concerns · Avg: 2.3/10
Return on EquityProfitability
5.9%3/10

ROE of 5.9% — below average capital efficiency

PEG RatioValuation
12.472/10

Expensive relative to growth rate

P/E RatioValuation
49.8x2/10

Premium valuation, high expectations priced in

Altman Z-ScoreHealth
0.752/10

Distress zone — elevated risk

WPP4 concerns · Avg: 2.5/10
Operating MarginProfitability
2.2%3/10

Operating margin of 2.2%

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
4.232/10

Expensive relative to growth rate

Revenue GrowthGrowth
-8.3%2/10

Revenue declined 8.3%

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 21.8% and operating margin at 17.2%. Revenue growth of 16.7% demonstrates continued momentum.

Bull Case : WPP

The strongest argument for WPP centers on Free Cash Flow.

Bear Case : DLR

The primary concerns for DLR are Return on Equity, PEG Ratio, P/E Ratio. A P/E of 49.8x leaves little room for execution misses.

Bear Case : WPP

The primary concerns for WPP are Operating Margin, Piotroski F-Score, PEG Ratio. Debt-to-equity of 2.69 is elevated, increasing financial risk.

Key Dynamics to Monitor

DLR profiles as a growth stock while WPP is a turnaround play — different risk/reward profiles.

DLR carries more volatility with a beta of 1.08 — expect wider price swings.

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

WPP generates stronger free cash flow (1.7B), providing more financial flexibility.

Bottom Line

DLR scores higher overall (61/100 vs 34/100), backed by strong 21.8% margins and 16.7% revenue growth. WPP offers better value entry with a 68.9% margin of safety. Both earn "Buy" and "Avoid" 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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WPP PLC ADR

COMMUNICATION SERVICES · ADVERTISING AGENCIES · USA

WPP plc, a creative transformation company, provides communications, expertise, trade and technology services in North America, the UK, Western Continental Europe, Asia Pacific, Latin America, Africa, the Middle East, and Central and Eastern Europe. The company is headquartered in London, the United Kingdom.

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