Analyzing Digital Realty Trust (NYSE:DLR) and Peakstone Realty Trust (NYSE:PKST)

Peakstone Realty Trust (NYSE:PKST) and Digital Realty Trust (NYSE:DLR) are both finance companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, earnings, analyst recommendations, dividends, risk, institutional ownership and valuation.

Valuation and Earnings

This table compares Peakstone Realty Trust and Digital Realty Trust”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Peakstone Realty Trust	$105.98 million	7.32	-$307.71 million	($8.39)	-2.49
Digital Realty Trust	$6.11 billion	9.73	$1.31 billion	$3.60	48.10

Digital Realty Trust has higher revenue and earnings than Peakstone Realty Trust. Peakstone Realty Trust is trading at a lower price-to-earnings ratio than Digital Realty Trust, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

39.0% of Peakstone Realty Trust shares are held by institutional investors. Comparatively, 99.7% of Digital Realty Trust shares are held by institutional investors. 0.8% of Peakstone Realty Trust shares are held by company insiders. Comparatively, 0.2% of Digital Realty Trust shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares Peakstone Realty Trust and Digital Realty Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Peakstone Realty Trust	-189.03%	-39.44%	-16.55%
Digital Realty Trust	21.41%	5.88%	2.73%

Dividends

Peakstone Realty Trust pays an annual dividend of $0.40 per share and has a dividend yield of 1.9%. Digital Realty Trust pays an annual dividend of $4.88 per share and has a dividend yield of 2.8%. Peakstone Realty Trust pays out -4.8% of its earnings in the form of a dividend. Digital Realty Trust pays out 135.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Peakstone Realty Trust has increased its dividend for 1 consecutive years.

Risk & Volatility

Peakstone Realty Trust has a beta of 1.45, meaning that its share price is 45% more volatile than the S&P 500. Comparatively, Digital Realty Trust has a beta of 1.12, meaning that its share price is 12% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Peakstone Realty Trust and Digital Realty Trust, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Peakstone Realty Trust	1	3	0	0	1.75
Digital Realty Trust	0	8	16	3	2.81

Peakstone Realty Trust currently has a consensus price target of $21.00, suggesting a potential upside of 0.70%. Digital Realty Trust has a consensus price target of $194.68, suggesting a potential upside of 12.42%. Given Digital Realty Trust’s stronger consensus rating and higher probable upside, analysts clearly believe Digital Realty Trust is more favorable than Peakstone Realty Trust.

Summary

Digital Realty Trust beats Peakstone Realty Trust on 14 of the 18 factors compared between the two stocks.

About Peakstone Realty Trust

Peakstone Realty Trust (NYSE: PKST) is an internally managed, real estate investment trust (REIT) that owns and operates a high-quality, newer-vintage portfolio of predominantly single-tenant industrial and office properties. These assets are generally leased to creditworthy tenants under long-term net lease agreements with contractual rent escalations. As of March 31, 2023, Peakstone's wholly-owned portfolio consists of 19 million square feet across 24 states in primarily high-growth, strategic coastal and sunbelt markets.

About Digital Realty Trust

Digital Realty Trust, Inc. operates as a real estate investment trust, which engages in the provision of data center, colocation and interconnection solutions. It serves the following industries: artificial intelligence (AI), networks, cloud, digital media, mobile, financial services, healthcare, and gaming. The company was founded on March 9, 2004, and is headquartered in Dallas, TX.