Peakstone Realty Trust (NYSE:PKST) and Digital Realty Trust (NYSE:DLR) Head-To-Head Contrast

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

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Digital Realty Trust and Peakstone Realty Trust, as provided by MarketBeat.com.

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

Digital Realty Trust currently has a consensus target price of $194.68, indicating a potential upside of 8.33%. Peakstone Realty Trust has a consensus target price of $21.00, indicating a potential upside of 0.74%. Given Digital Realty Trust’s stronger consensus rating and higher possible upside, research analysts plainly believe Digital Realty Trust is more favorable than Peakstone Realty Trust.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Digital Realty Trust	$6.11 billion	10.10	$1.31 billion	$3.60	49.92
Peakstone Realty Trust	$105.98 million	7.31	-$307.71 million	($8.39)	-2.48

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.

Profitability

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

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

Dividends

Digital Realty Trust pays an annual dividend of $4.88 per share and has a dividend yield of 2.7%. Peakstone Realty Trust pays an annual dividend of $0.40 per share and has a dividend yield of 1.9%. 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 pays out -4.8% of its earnings in the form of a dividend. Peakstone Realty Trust has raised its dividend for 1 consecutive years.

Risk and Volatility

Digital Realty Trust has a beta of 1.12, indicating that its share price is 12% more volatile than the S&P 500. Comparatively, Peakstone Realty Trust has a beta of 1.46, indicating that its share price is 46% more volatile than the S&P 500.

Insider and Institutional Ownership

99.7% of Digital Realty Trust shares are held by institutional investors. Comparatively, 39.0% of Peakstone Realty Trust shares are held by institutional investors. 0.1% of Digital Realty Trust shares are held by company insiders. Comparatively, 0.8% of Peakstone Realty Trust shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

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

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.

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.