WallStSmart

Digital Realty Trust Inc (DLR)vsEmpire State Realty Trust Inc (ESRT)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Digital Realty Trust Inc generates 722% more annual revenue ($6.31B vs $767.81M). DLR leads profitability with a 21.8% profit margin vs 6.2%. DLR appears more attractively valued with a PEG of 12.57. DLR earns a higher WallStSmart Score of 61/100 (C+).

DLR

Buy

61

out of 100

Grade: C+

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

ESRT

Buy

56

out of 100

Grade: C

Growth: 6.0Profit: 5.0Value: 6.0Quality: 4.8
Piotroski: 2/9
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

DLRSignificantly Overvalued (-31.8%)

Margin of Safety

-31.8%

Fair Value

$132.50

Current Price

$200.94

$68.44 premium

UndervaluedFair: $132.50Overvalued
ESRTUndervalued (+68.5%)

Margin of Safety

+68.5%

Fair Value

$20.26

Current Price

$5.57

$14.69 discount

UndervaluedFair: $20.26Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

DLR4 strengths · Avg: 9.0/10
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

Revenue GrowthGrowth
16.7%8/10

16.7% revenue growth

ESRT2 strengths · Avg: 10.0/10
Price/BookValuation
0.9x10/10

Reasonable price relative to book value

EPS GrowthGrowth
75.4%10/10

Earnings expanding 75.4% YoY

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

ESRT4 concerns · Avg: 3.3/10
Revenue GrowthGrowth
0.8%4/10

0.8% revenue growth

Market CapQuality
$1.69B3/10

Smaller company, higher risk/reward

Return on EquityProfitability
4.0%3/10

ROE of 4.0% — below average capital efficiency

Profit MarginProfitability
6.2%3/10

6.2% margin — thin

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 : ESRT

The strongest argument for ESRT centers on Price/Book, EPS Growth.

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 : ESRT

The primary concerns for ESRT are Revenue Growth, Market Cap, Return on Equity.

Key Dynamics to Monitor

DLR profiles as a growth stock while ESRT is a value play — different risk/reward profiles.

ESRT carries more volatility with a beta of 1.39 — expect wider price swings.

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

ESRT generates stronger free cash flow (-8M), providing more financial flexibility.

Bottom Line

DLR scores higher overall (61/100 vs 56/100), backed by strong 21.8% margins and 16.7% revenue growth. ESRT offers better value entry with a 68.5% margin of safety. Both earn "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.

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Empire State Realty Trust Inc

REAL ESTATE · REIT - DIVERSIFIED · USA

Empire State Realty Trust, Inc. (NYSE: ESRT), a major real estate investment trust (REIT), owns, manages, operates, acquires and repositions offices and retail properties in Manhattan and the New York metropolitan area, including the Empire State Building, the?

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