WallStSmart

Digital Realty Trust Inc (DLR)vsInnovative Industrial Properties Inc (IIPR)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Digital Realty Trust Inc generates 2299% more annual revenue ($6.31B vs $263.23M). IIPR leads profitability with a 45.6% profit margin vs 21.8%. IIPR trades at a lower P/E of 15.6x. 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

IIPR

Buy

54

out of 100

Grade: C-

Growth: 2.7Profit: 7.5Value: 6.0Quality: 6.0
Piotroski: 3/9Altman Z: 2.10
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

DLRSignificantly Overvalued (-52.6%)

Margin of Safety

-52.6%

Fair Value

$114.41

Current Price

$193.02

$78.61 premium

UndervaluedFair: $114.41Overvalued

Intrinsic value data unavailable for IIPR.

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
$66.14B9/10

Large-cap with strong market position

Profit MarginProfitability
21.8%9/10

Keeps 22 of every $100 in revenue as profit

Price/BookValuation
3.0x8/10

Reasonable price relative to book value

Revenue GrowthGrowth
16.7%8/10

16.7% revenue growth

IIPR5 strengths · Avg: 9.4/10
Price/BookValuation
1.0x10/10

Reasonable price relative to book value

Profit MarginProfitability
45.6%10/10

Keeps 46 of every $100 in revenue as profit

Operating MarginProfitability
49.8%10/10

Strong operational efficiency at 49.8%

Debt/EquityHealth
0.199/10

Conservative balance sheet, low leverage

P/E RatioValuation
15.6x8/10

Attractively priced relative to earnings

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
49.0x2/10

Premium valuation, high expectations priced in

Altman Z-ScoreHealth
0.752/10

Distress zone — elevated risk

IIPR4 concerns · Avg: 3.3/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Market CapQuality
$1.77B3/10

Smaller company, higher risk/reward

Return on EquityProfitability
6.3%3/10

ROE of 6.3% — below average capital efficiency

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

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 : IIPR

The strongest argument for IIPR centers on Price/Book, Profit Margin, Operating Margin. Profitability is solid with margins at 45.6% and operating margin at 49.8%.

Bear Case : DLR

The primary concerns for DLR are Return on Equity, PEG Ratio, P/E Ratio. A P/E of 49.0x leaves little room for execution misses.

Bear Case : IIPR

The primary concerns for IIPR are EPS Growth, Market Cap, Return on Equity.

Key Dynamics to Monitor

DLR profiles as a growth stock while IIPR is a declining play — different risk/reward profiles.

IIPR carries more volatility with a beta of 1.45 — 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 (61/100 vs 54/100), backed by strong 21.8% margins and 16.7% revenue growth. 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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Innovative Industrial Properties Inc

REAL ESTATE · REIT - INDUSTRIAL · USA

Innovative Industrial Properties, Inc. is a self-advising Maryland corporation focused on acquiring, owning, and managing specialty properties leased to experienced state-licensed operators for their regulated medical cannabis facilities.

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