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DLR vs ESRT

DLR
Digital Realty Trust, Inc.
BEARISH
Price
$200.86
Market Cap
$71.33B
Sector
Real Estate
AI Confidence
85%
ESRT
Empire State Realty Trust, Inc.
NEUTRAL
Price
$5.56
Market Cap
$951.1M
Sector
Real Estate
AI Confidence
85%

Valuation

P/E Ratio
DLR
56.11
ESRT
22.24
Forward P/E
DLR
62.06
ESRT
92.67
P/B Ratio
DLR
3.11
ESRT
0.89
P/S Ratio
DLR
11.73
ESRT
1.24
EV/EBITDA
DLR
31.83
ESRT
12.67

Profitability

Gross Margin
DLR
55.16%
ESRT
52.46%
Operating Margin
DLR
14.15%
ESRT
17.77%
Profit Margin
DLR
21.52%
ESRT
6.2%
ROE
DLR
5.47%
ESRT
4.05%
ROA
DLR
1.18%
ESRT
1.89%

Growth

Revenue Growth
DLR
17.1%
ESRT
0.8%
Earnings Growth
DLR
-53.4%
ESRT
75.4%

Financial Health

Debt/Equity
DLR
0.82
ESRT
1.32
Current Ratio
DLR
1.3
ESRT
2.61
Quick Ratio
DLR
1.22
ESRT
2.41

Dividends

Dividend Yield
DLR
2.43%
ESRT
2.52%
Payout Ratio
DLR
136.31%
ESRT
56.0%

AI Verdict

DLR BEARISH

DLR presents a concerning divergence between market price and fundamental value, anchored by a stable but mediocre Piotroski F-Score of 4/9. While revenue growth is robust at 17.1%, the company is experiencing a severe earnings collapse (-53.4% YoY) and an unsustainable dividend payout ratio of 136.31%. The stock trades at a massive premium to its Graham Number ($72.14) and Intrinsic Value ($25.06), with a PEG ratio of 19.01 signaling extreme overvaluation. Despite analyst 'Buy' recommendations, the deterministic data suggests the current price is driven by sector hype rather than financial performance.

Strengths
Strong top-line revenue growth of 17.10% YoY
Healthy gross margins at 55.16%
Manageable Debt/Equity ratio of 0.82 compared to sector average
Risks
Unsustainable dividend payout ratio (136.31%) indicating dividends exceed earnings
Severe contraction in earnings growth (-53.4% YoY)
Extreme valuation metrics (P/E of 56.11 and PEG of 19.01)
ESRT NEUTRAL

ESRT presents as a classic value trap, trading below its Graham Number ($5.91) and Book Value (P/B 0.89), yet suffering from a total collapse in technical momentum (0/100). The Piotroski F-Score of 4/9 indicates stable but mediocre financial health, while the massive jump in Forward P/E (from 22.24 to 92.67) signals an expected sharp contraction in future earnings. While the current price offers a margin of safety relative to assets, the structural headwinds of NYC office vacancy and extreme geographic concentration offset the valuation appeal.

Strengths
Trading below book value (P/B 0.89), suggesting asset-based support
Strong short-term liquidity with a Current Ratio of 2.61
Sustainable dividend payout ratio of 56%
Risks
Extreme geographic concentration in New York City real estate
Severe technical bearishness with a 0/100 trend score and -29.4% 6-month return
Stagnant revenue growth (0.80% YoY) indicating a lack of organic expansion

Compare Another Pair

DLR vs ESRT: Head-to-Head Comparison

This page compares Digital Realty Trust, Inc. (DLR) and Empire State Realty Trust, Inc. (ESRT) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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