Digital Realty Trust Inc (DLR)vsSimon Property Group Inc (SPG)
DLR
Digital Realty Trust Inc
$188.18
-2.59%
REAL ESTATE · Cap: $67.13B
SPG
Simon Property Group Inc
$235.61
-0.46%
REAL ESTATE · Cap: $85.96B
Smart Verdict
WallStSmart Research — data-driven comparison
Simon Property Group Inc generates 5% more annual revenue ($6.65B vs $6.31B). SPG leads profitability with a 70.6% profit margin vs 21.8%. SPG appears more attractively valued with a PEG of 8.74. SPG earns a higher WallStSmart Score of 63/100 (C+).
DLR
Buy61
out of 100
Grade: C+
SPG
Buy63
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-59.8%
Fair Value
$109.23
Current Price
$188.18
$78.95 premium
Margin of Safety
-26.8%
Fair Value
$153.57
Current Price
$235.61
$82.04 premium
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
Every $100 of equity generates 96 in profit
Keeps 71 of every $100 in revenue as profit
Strong operational efficiency at 43.4%
Large-cap with strong market position
Attractively priced relative to earnings
19.3% revenue growth
Areas to Watch
ROE of 2.9% — below average capital efficiency
Expensive relative to growth rate
Premium valuation, high expectations priced in
Distress zone — elevated risk
Trading at 15.9x book value
Expensive relative to growth rate
Distress zone — elevated risk
Elevated debt levels
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 : SPG
The strongest argument for SPG centers on Return on Equity, Profit Margin, Operating Margin. Profitability is solid with margins at 70.6% and operating margin at 43.4%. Revenue growth of 19.3% demonstrates continued momentum.
Bear Case : DLR
The primary concerns for DLR are Return on Equity, PEG Ratio, P/E Ratio. A P/E of 47.6x leaves little room for execution misses.
Bear Case : SPG
The primary concerns for SPG are Price/Book, PEG Ratio, Altman Z-Score. Debt-to-equity of 5.96 is elevated, increasing financial risk.
Key Dynamics to Monitor
SPG carries more volatility with a beta of 1.33 — expect wider price swings.
SPG is growing revenue faster at 19.3% — sustainability is the question.
SPG generates stronger free cash flow (625M), providing more financial flexibility.
Monitor REIT - SPECIALTY industry trends, competitive dynamics, and regulatory changes.
Bottom Line
SPG scores higher overall (63/100 vs 61/100), backed by strong 70.6% margins and 19.3% 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 →Simon Property Group Inc
REAL ESTATE · REIT - RETAIL · USA
Simon Property Group, Inc. is a real estate investment trust that invests in shopping malls, outlet centers, and community/lifestyle centers. It is the largest owner of shopping malls in the United States and is headquartered in Indianapolis, Indiana.
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