WallStSmart

Digital Realty Trust Inc (DLR)vsHealthcare Realty Trust Incorporated (HR)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Digital Realty Trust Inc generates 444% more annual revenue ($6.31B vs $1.16B). DLR leads profitability with a 21.8% profit margin vs -17.3%. HR appears more attractively valued with a PEG of 8.82. DLR earns a higher WallStSmart Score of 59/100 (C).

DLR

Buy

59

out of 100

Grade: C

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

HR

Avoid

34

out of 100

Grade: F

Growth: 3.3Profit: 3.5Value: 5.0Quality: 4.5
Piotroski: 6/9Altman Z: 0.02
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

DLRSignificantly Overvalued (-31.5%)

Margin of Safety

-31.5%

Fair Value

$132.74

Current Price

$200.70

$67.96 premium

UndervaluedFair: $132.74Overvalued
HRUndervalued (+24.2%)

Margin of Safety

+24.2%

Fair Value

$22.95

Current Price

$19.25

$3.70 discount

UndervaluedFair: $22.95Overvalued

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
$71.27B9/10

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

HR1 strengths · Avg: 10.0/10
Price/BookValuation
1.5x10/10

Reasonable price relative to book value

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
12.962/10

Expensive relative to growth rate

P/E RatioValuation
53.2x2/10

Premium valuation, high expectations priced in

HR4 concerns · Avg: 2.0/10
PEG RatioValuation
8.822/10

Expensive relative to growth rate

Return on EquityProfitability
-4.2%2/10

ROE of -4.2% — below average capital efficiency

Revenue GrowthGrowth
-6.5%2/10

Revenue declined 6.5%

EPS GrowthGrowth
-76.8%2/10

Earnings declined 76.8%

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 : HR

The strongest argument for HR centers on Price/Book.

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 : HR

The primary concerns for HR are PEG Ratio, Return on Equity, Revenue Growth.

Key Dynamics to Monitor

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

DLR carries more volatility with a beta of 1.09 — expect wider price swings.

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

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

Bottom Line

DLR scores higher overall (59/100 vs 34/100), backed by strong 21.8% margins and 16.7% revenue growth. HR offers better value entry with a 24.2% 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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Healthcare Realty Trust Incorporated

REAL ESTATE · REIT - HEALTHCARE FACILITIES · USA

Healthcare Realty Trust is a real estate investment trust that integrates the ownership, management, financing, and development of income-generating real estate primarily associated with the provision of outpatient healthcare services throughout the United States.

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