Digital Realty Trust Inc (DLR)vsShopify Inc (SHOP)
DLR
Digital Realty Trust Inc
$200.94
+3.28%
REAL ESTATE · Cap: $71.36B
SHOP
Shopify Inc
$121.13
-0.11%
TECHNOLOGY · Cap: $157.59B
Smart Verdict
WallStSmart Research — data-driven comparison
Shopify Inc generates 83% more annual revenue ($11.56B vs $6.31B). DLR leads profitability with a 21.8% profit margin vs 10.6%. SHOP appears more attractively valued with a PEG of 2.41. DLR earns a higher WallStSmart Score of 61/100 (C+).
DLR
Buy61
out of 100
Grade: C+
SHOP
Buy50
out of 100
Grade: C-
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
+21.1%
Fair Value
$148.11
Current Price
$121.13
$26.98 discount
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
Revenue surging 30.6% year-over-year
Conservative balance sheet, low leverage
Safe zone — low bankruptcy risk
Large-cap with strong market position
Strong operational efficiency at 20.3%
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
Expensive relative to growth rate
Trading at 11.7x book value
Weak financial health signals
Premium valuation, high expectations priced in
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 : SHOP
The strongest argument for SHOP centers on Revenue Growth, Debt/Equity, Altman Z-Score. Revenue growth of 30.6% 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 : SHOP
The primary concerns for SHOP are PEG Ratio, Price/Book, Piotroski F-Score. A P/E of 128.9x leaves little room for execution misses.
Key Dynamics to Monitor
SHOP carries more volatility with a beta of 2.82 — expect wider price swings.
SHOP is growing revenue faster at 30.6% — sustainability is the question.
SHOP generates stronger free cash flow (715M), providing more financial flexibility.
Monitor REIT - SPECIALTY industry trends, competitive dynamics, and regulatory changes.
Bottom Line
DLR scores higher overall (61/100 vs 50/100), backed by strong 21.8% margins and 16.7% revenue growth. SHOP offers better value entry with a 21.1% margin of safety. Both earn "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 →Shopify Inc
TECHNOLOGY · SOFTWARE - APPLICATION · USA
Shopify Inc., a commerce company, offers a commerce and service platform in Canada, the United States, the United Kingdom, Australia, Latin America, and internationally. The company is headquartered in Ottawa, Canada.
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