Digital Realty Trust Inc (DLR)vsAnnaly Capital Management, Inc. (NLY)
DLR
Digital Realty Trust Inc
$200.94
+3.28%
REAL ESTATE · Cap: $71.36B
NLY
Annaly Capital Management, Inc.
$22.54
-1.27%
REAL ESTATE · Cap: $16.46B
Smart Verdict
WallStSmart Research — data-driven comparison
Digital Realty Trust Inc generates 152% more annual revenue ($6.31B vs $2.50B). NLY leads profitability with a 87.4% profit margin vs 21.8%. DLR appears more attractively valued with a PEG of 12.57. NLY earns a higher WallStSmart Score of 77/100 (B+).
DLR
Buy61
out of 100
Grade: C+
NLY
Strong Buy77
out of 100
Grade: B+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-31.8%
Fair Value
$132.50
Current Price
$200.94
$68.44 premium
Margin of Safety
-13.8%
Fair Value
$20.05
Current Price
$22.54
$2.49 premium
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
Attractively priced relative to earnings
Reasonable price relative to book value
Keeps 87 of every $100 in revenue as profit
Strong operational efficiency at 81.0%
Revenue surging 48.8% year-over-year
Earnings expanding 122.5% YoY
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
Weak financial health signals
Expensive relative to growth rate
Distress zone — elevated risk
Elevated debt levels
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 : NLY
The strongest argument for NLY centers on P/E Ratio, Price/Book, Profit Margin. Profitability is solid with margins at 87.4% and operating margin at 81.0%. Revenue growth of 48.8% demonstrates continued momentum.
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 : NLY
The primary concerns for NLY are Piotroski F-Score, PEG Ratio, Altman Z-Score. Debt-to-equity of 6.95 is elevated, increasing financial risk.
Key Dynamics to Monitor
NLY carries more volatility with a beta of 1.30 — expect wider price swings.
NLY is growing revenue faster at 48.8% — sustainability is the question.
NLY generates stronger free cash flow (472M), providing more financial flexibility.
Monitor REIT - SPECIALTY industry trends, competitive dynamics, and regulatory changes.
Bottom Line
NLY scores higher overall (77/100 vs 61/100), backed by strong 87.4% margins and 48.8% revenue growth. Both earn "Strong 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 →Annaly Capital Management, Inc.
REAL ESTATE · REIT - MORTGAGE · USA
Annaly Capital Management, Inc., a diversified capital manager, invests in and finances residential and commercial assets. The company is headquartered in New York, New York.
Visit Website →Compare with Other REIT - SPECIALTY Stocks
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