Digital Realty Trust Inc (DLR)vsSouthern Company (SO)
DLR
Digital Realty Trust Inc
$200.70
-0.12%
REAL ESTATE · Cap: $71.36B
SO
Southern Company
$96.71
+0.01%
UTILITIES · Cap: $109.01B
Smart Verdict
WallStSmart Research — data-driven comparison
Southern Company generates 368% more annual revenue ($29.55B vs $6.31B). DLR leads profitability with a 21.8% profit margin vs 14.7%. SO appears more attractively valued with a PEG of 2.66. DLR earns a higher WallStSmart Score of 61/100 (C+).
DLR
Buy61
out of 100
Grade: C+
SO
Buy54
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-31.5%
Fair Value
$132.74
Current Price
$200.70
$67.96 premium
Margin of Safety
-34.8%
Fair Value
$71.72
Current Price
$96.71
$24.99 premium
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
Large-cap with strong market position
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
Earnings declined 22.1%
Negative free cash flow — burning cash
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 : SO
The strongest argument for SO centers on Market Cap. Revenue growth of 10.1% 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 : SO
The primary concerns for SO are PEG Ratio, EPS Growth, Free Cash Flow.
Key Dynamics to Monitor
DLR profiles as a growth stock while SO 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.
SO generates stronger free cash flow (-1.7B), providing more financial flexibility.
Bottom Line
DLR scores higher overall (61/100 vs 54/100), backed by strong 21.8% margins and 16.7% revenue growth. 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 →Southern Company
UTILITIES · UTILITIES - REGULATED ELECTRIC · USA
Southern Company is an American gas and electric utility holding company based in the southern United States. It is headquartered in Atlanta, Georgia, with executive offices also located in Birmingham, Alabama.
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