WallStSmart

Digital Realty Trust Inc (DLR)vsRLJ Lodging Trust (RLJ)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Digital Realty Trust Inc generates 368% more annual revenue ($6.31B vs $1.35B). DLR leads profitability with a 21.8% profit margin vs 2.1%. RLJ appears more attractively valued with a PEG of 2.06. 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

RLJ

Hold

45

out of 100

Grade: D+

Growth: 2.7Profit: 4.5Value: 5.3Quality: 4.0
Piotroski: 3/9Altman Z: 0.65
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
RLJUndervalued (+70.3%)

Margin of Safety

+70.3%

Fair Value

$28.34

Current Price

$8.24

$20.10 discount

UndervaluedFair: $28.34Overvalued

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

RLJ1 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

RLJ4 concerns · Avg: 3.3/10
PEG RatioValuation
2.064/10

Expensive relative to growth rate

Market CapQuality
$1.26B3/10

Smaller company, higher risk/reward

Return on EquityProfitability
1.3%3/10

ROE of 1.3% — below average capital efficiency

Profit MarginProfitability
2.1%3/10

2.1% margin — thin

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 : RLJ

The strongest argument for RLJ 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 : RLJ

The primary concerns for RLJ are PEG Ratio, Market Cap, Return on Equity. A P/E of 827.0x leaves little room for execution misses. Thin 2.1% 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.

DLR carries more volatility with a beta of 1.09 — expect wider price swings.

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

RLJ generates stronger free cash flow (48M), 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 70.3% 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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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.

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