Digital Realty Trust Inc (DLR)vsRLJ Lodging Trust (RLJ)
DLR
Digital Realty Trust Inc
$186.79
-1.01%
REAL ESTATE · Cap: $66.14B
RLJ
RLJ Lodging Trust
$10.60
+0.57%
REAL ESTATE · Cap: $1.68B
Smart Verdict
WallStSmart Research — data-driven comparison
Digital Realty Trust Inc generates 364% more annual revenue ($6.31B vs $1.36B). DLR leads profitability with a 21.8% profit margin vs 1.8%. RLJ appears more attractively valued with a PEG of 2.06. DLR earns a higher WallStSmart Score of 61/100 (C+).
DLR
Buy61
out of 100
Grade: C+
RLJ
Hold45
out of 100
Grade: D
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-52.6%
Fair Value
$114.41
Current Price
$186.79
$72.38 premium
Margin of Safety
+55.9%
Fair Value
$19.06
Current Price
$10.60
$8.46 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Earnings expanding 67.6% YoY
Large-cap with strong market position
Keeps 22 of every $100 in revenue as profit
Reasonable price relative to book value
16.7% revenue growth
Reasonable price relative to book value
Areas to Watch
ROE of 5.9% — below average capital efficiency
Expensive relative to growth rate
Premium valuation, high expectations priced in
Distress zone — elevated risk
Expensive relative to growth rate
3.6% revenue growth
Smaller company, higher risk/reward
ROE of 1.1% — below average capital efficiency
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 17.2%. Revenue growth of 16.7% demonstrates continued momentum.
Bull Case : RLJ
The strongest argument for RLJ centers on Price/Book.
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 : RLJ
The primary concerns for RLJ are PEG Ratio, Revenue Growth, Market Cap. Thin 1.8% margins leave little buffer for downturns.
Key Dynamics to Monitor
DLR profiles as a growth stock while RLJ is a value play — different risk/reward profiles.
RLJ 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.
DLR generates stronger free cash flow (532M), providing more financial flexibility.
Bottom Line
DLR scores higher overall (61/100 vs 45/100), backed by strong 21.8% margins and 16.7% revenue growth. RLJ offers better value entry with a 55.9% 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.
Visit Website →RLJ Lodging Trust
REAL ESTATE · REIT - HOTEL & MOTEL · USA
RLJ Lodging Trust is a publicly traded and publicly traded real estate investment trust primarily owning premium brand, high margin, focused service and compact full service hotels.
Visit Website →Compare with Other REIT - SPECIALTY Stocks
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