Digital Realty Trust Inc (DLR)vsWaters Corporation (WAT)
DLR
Digital Realty Trust Inc
$186.79
-1.01%
REAL ESTATE · Cap: $66.98B
WAT
Waters Corporation
$365.36
-2.95%
HEALTHCARE · Cap: $34.91B
Smart Verdict
WallStSmart Research — data-driven comparison
Digital Realty Trust Inc generates 67% more annual revenue ($6.31B vs $3.77B). DLR leads profitability with a 21.8% profit margin vs 11.9%. WAT appears more attractively valued with a PEG of 1.60. DLR earns a higher WallStSmart Score of 61/100 (C+).
DLR
Buy61
out of 100
Grade: C+
WAT
Buy50
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-52.8%
Fair Value
$114.22
Current Price
$186.79
$72.57 premium
Margin of Safety
-84.6%
Fair Value
$178.29
Current Price
$365.36
$187.07 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
Revenue surging 91.4% year-over-year
Safe zone — low bankruptcy risk
Areas to Watch
ROE of 5.9% — below average capital efficiency
Expensive relative to growth rate
Premium valuation, high expectations priced in
Distress zone — elevated risk
Expensive relative to growth rate
Trading at 8.5x book value
ROE of 2.9% — below average capital efficiency
Operating margin of 2.8%
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 : WAT
The strongest argument for WAT centers on Revenue Growth, Altman Z-Score. Revenue growth of 91.4% demonstrates continued momentum.
Bear Case : DLR
The primary concerns for DLR are Return on Equity, PEG Ratio, P/E Ratio. A P/E of 49.8x leaves little room for execution misses.
Bear Case : WAT
The primary concerns for WAT are PEG Ratio, Price/Book, Return on Equity. A P/E of 45.2x leaves little room for execution misses.
Key Dynamics to Monitor
WAT carries more volatility with a beta of 1.20 — expect wider price swings.
WAT is growing revenue faster at 91.4% — sustainability is the question.
DLR generates stronger free cash flow (532M), 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. 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 →Waters Corporation
HEALTHCARE · DIAGNOSTICS & RESEARCH · USA
Waters Corporation is a publicly traded Analytical Laboratory instrument and software company headquartered in Milford, Massachusetts.
Compare with Other REIT - SPECIALTY Stocks
Want to dig deeper into these stocks?