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DLR vs MFA

DLR
Digital Realty Trust, Inc.
BEARISH
Price
$200.86
Market Cap
$71.33B
Sector
Real Estate
AI Confidence
85%
MFA
MFA Financial, Inc.
NEUTRAL
Price
$10.17
Market Cap
$1.04B
Sector
Real Estate
AI Confidence
85%

Valuation

P/E Ratio
DLR
56.11
MFA
7.82
Forward P/E
DLR
62.06
MFA
6.8
P/B Ratio
DLR
3.11
MFA
0.57
P/S Ratio
DLR
11.73
MFA
3.19
EV/EBITDA
DLR
31.83
MFA
--

Profitability

Gross Margin
DLR
55.16%
MFA
89.72%
Operating Margin
DLR
14.15%
MFA
61.66%
Profit Margin
DLR
21.52%
MFA
54.33%
ROE
DLR
5.47%
MFA
9.63%
ROA
DLR
1.18%
MFA
1.45%

Growth

Revenue Growth
DLR
17.1%
MFA
111.3%
Earnings Growth
DLR
-53.4%
MFA
--

Financial Health

Debt/Equity
DLR
0.82
MFA
6.01
Current Ratio
DLR
1.3
MFA
40.07
Quick Ratio
DLR
1.22
MFA
39.32

Dividends

Dividend Yield
DLR
2.43%
MFA
14.16%
Payout Ratio
DLR
136.31%
MFA
110.77%

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)
MFA NEUTRAL

MFA presents a classic 'value trap' profile, characterized by a weak Piotroski F-Score of 3/9 and an unsustainable dividend payout ratio of 110.77%. While the stock trades at a deep discount to book value (0.57x) and significantly below its Graham Number ($22.93), the underlying financial health is fragile. High leverage (Debt/Equity 6.01) and a severely bearish technical trend (10/100) offset the attractive valuation metrics. The significant gap between the growth-based intrinsic value ($9.10) and the defensive Graham Number suggests high volatility and risk in asset valuation.

Strengths
Deep discount to book value (0.57x)
Low P/E ratio (7.82) relative to sector averages
Exceptional year-over-year revenue growth (111.30%)
Risks
Unsustainable dividend payout ratio (110.77%) indicating potential cuts
Weak operational health as evidenced by Piotroski F-Score of 3/9
High financial leverage with Debt/Equity at 6.01

Compare Another Pair

DLR vs MFA: Head-to-Head Comparison

This page compares Digital Realty Trust, Inc. (DLR) and MFA Financial, Inc. (MFA) 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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