WallStSmart

Digital Realty Trust Inc (DLR)vsSafehold Inc (SAFE)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Digital Realty Trust Inc generates 1461% more annual revenue ($6.31B vs $404.44M). SAFE leads profitability with a 28.3% profit margin vs 21.8%. SAFE appears more attractively valued with a PEG of 0.65. SAFE earns a higher WallStSmart Score of 70/100 (B).

DLR

Buy

61

out of 100

Grade: C+

Growth: 8.0Profit: 6.0Value: 2.0Quality: 5.5
Piotroski: 5/9Altman Z: 0.75

SAFE

Strong Buy

70

out of 100

Grade: B

Growth: 6.7Profit: 7.0Value: 9.3Quality: 5.0
Piotroski: 3/9Altman Z: 0.92
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
SAFEUndervalued (+81.5%)

Margin of Safety

+81.5%

Fair Value

$80.19

Current Price

$16.02

$64.17 discount

UndervaluedFair: $80.19Overvalued

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

SAFE5 strengths · Avg: 9.4/10
P/E RatioValuation
10.1x10/10

Attractively priced relative to earnings

Price/BookValuation
0.5x10/10

Reasonable price relative to book value

Operating MarginProfitability
81.8%10/10

Strong operational efficiency at 81.8%

Profit MarginProfitability
28.3%9/10

Keeps 28 of every $100 in revenue as profit

PEG RatioValuation
0.658/10

Growing faster than its price suggests

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

SAFE4 concerns · Avg: 3.0/10
Market CapQuality
$1.15B3/10

Smaller company, higher risk/reward

Return on EquityProfitability
4.8%3/10

ROE of 4.8% — below average capital efficiency

Debt/EquityHealth
1.963/10

Elevated debt levels

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

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 : SAFE

The strongest argument for SAFE centers on P/E Ratio, Price/Book, Operating Margin. Profitability is solid with margins at 28.3% and operating margin at 81.8%. PEG of 0.65 suggests the stock is reasonably priced for its growth.

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 : SAFE

The primary concerns for SAFE are Market Cap, Return on Equity, Debt/Equity. Debt-to-equity of 1.96 is elevated, increasing financial risk.

Key Dynamics to Monitor

DLR profiles as a growth stock while SAFE is a mature play — different risk/reward profiles.

SAFE carries more volatility with a beta of 1.85 — expect wider price swings.

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

SAFE generates stronger free cash flow (12M), providing more financial flexibility.

Bottom Line

SAFE scores higher overall (70/100 vs 61/100), backed by strong 28.3% margins. 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.

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Safehold Inc

REAL ESTATE · REIT - DIVERSIFIED · USA

Safehold Inc. (SAFE) is a leading real estate investment trust (REIT) focused on the acquisition and management of ground leases, which allows property owners to enhance their asset value while retaining ownership. By targeting high-quality urban properties, Safehold creates a low-risk investment profile with the potential for steady income generation. The company's strong balance sheet and dedication to sustainable income growth position it favorably to capitalize on the rising demand for ground leases. With its unique business model and commitment to delivering consistent returns, Safehold presents an appealing investment opportunity for institutional investors seeking diversification in their portfolios.

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