Digital Realty Trust Inc (DLR)vsIllinois Tool Works Inc (ITW)
DLR
Digital Realty Trust Inc
$200.94
+3.28%
REAL ESTATE · Cap: $71.36B
ITW
Illinois Tool Works Inc
$258.01
-2.88%
INDUSTRIALS · Cap: $74.36B
Smart Verdict
WallStSmart Research — data-driven comparison
Illinois Tool Works Inc generates 154% more annual revenue ($16.04B vs $6.31B). DLR leads profitability with a 21.8% profit margin vs 19.1%. ITW appears more attractively valued with a PEG of 2.69. DLR earns a higher WallStSmart Score of 61/100 (C+).
DLR
Buy61
out of 100
Grade: C+
ITW
Buy58
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-31.8%
Fair Value
$132.50
Current Price
$200.94
$68.44 premium
Intrinsic value data unavailable for ITW.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Earnings expanding 69.4% YoY
Large-cap with strong market position
Keeps 22 of every $100 in revenue as profit
16.7% revenue growth
Every $100 of equity generates 94 in profit
Safe zone — low bankruptcy risk
Large-cap with strong market position
Strong operational efficiency at 26.8%
Areas to Watch
ROE of 5.7% — below average capital efficiency
Elevated debt levels
Expensive relative to growth rate
Premium valuation, high expectations priced in
4.1% revenue growth
Weak financial health signals
Expensive relative to growth rate
Trading at 23.1x book value
Comparative Analysis Report
WallStSmart ResearchBull 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 : ITW
The strongest argument for ITW centers on Return on Equity, Altman Z-Score, Market Cap. Profitability is solid with margins at 19.1% and operating margin at 26.8%.
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 : ITW
The primary concerns for ITW are Revenue Growth, Piotroski F-Score, PEG Ratio.
Key Dynamics to Monitor
DLR profiles as a growth stock while ITW is a value play — different risk/reward profiles.
ITW carries more volatility with a beta of 1.15 — expect wider price swings.
DLR is growing revenue faster at 16.7% — sustainability is the question.
ITW generates stronger free cash flow (858M), providing more financial flexibility.
Bottom Line
DLR scores higher overall (61/100 vs 58/100), 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.
Visit Website →Illinois Tool Works Inc
INDUSTRIALS · SPECIALTY INDUSTRIAL MACHINERY · USA
Illinois Tool Works Inc. or ITW is an American company that produces engineered fasteners and components, equipment and consumable systems, and specialty products.
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