WallStSmart

Digital Realty Trust Inc (DLR)vsPiedmont Office Realty Trust Inc (PDM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Digital Realty Trust Inc generates 1018% more annual revenue ($6.31B vs $564.99M). DLR leads profitability with a 21.8% profit margin vs -14.8%. 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

PDM

Hold

40

out of 100

Grade: F

Growth: 2.7Profit: 3.5Value: 5.7Quality: 5.0
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
PDMUndervalued (+72.6%)

Margin of Safety

+72.6%

Fair Value

$30.96

Current Price

$8.36

$22.60 discount

UndervaluedFair: $30.96Overvalued

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

PDM1 strengths · Avg: 10.0/10
Price/BookValuation
0.7x10/10

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
12.572/10

Expensive relative to growth rate

P/E RatioValuation
53.2x2/10

Premium valuation, high expectations priced in

PDM4 concerns · Avg: 2.3/10
Market CapQuality
$1.03B3/10

Smaller company, higher risk/reward

PEG RatioValuation
16.742/10

Expensive relative to growth rate

Return on EquityProfitability
-5.4%2/10

ROE of -5.4% — below average capital efficiency

Revenue GrowthGrowth
-0.3%2/10

Revenue declined 0.3%

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 : PDM

The strongest argument for PDM 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 : PDM

The primary concerns for PDM are Market Cap, PEG Ratio, Return on Equity.

Key Dynamics to Monitor

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

PDM carries more volatility with a beta of 1.27 — expect wider price swings.

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

PDM generates stronger free cash flow (10M), providing more financial flexibility.

Bottom Line

DLR scores higher overall (61/100 vs 40/100), backed by strong 21.8% margins and 16.7% revenue growth. PDM offers better value entry with a 72.6% margin of safety. Both earn "Buy" and "Hold" 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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Piedmont Office Realty Trust Inc

REAL ESTATE · REIT - OFFICE · USA

Piedmont Office Realty Trust, Inc. (NYSE: PDM) is the owner, manager, developer, remodeler, and operator of high-quality Class A office properties located primarily in select submarkets within the seven major eastern US office markets. Most of your income is generated at Sunbelt.

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