Digital Realty Trust vs Equinix Which Is More Profitable?

Digital Realty Trust and Equinix are two of the leading players in the data center real estate investment trust (REIT) industry. Both companies own and operate a vast network of data centers that serve as the backbone of the digital economy. Digital Realty Trust has a portfolio of over 200 data centers worldwide, while Equinix operates more than 200 data centers across 55 markets. Investors often compare these two stocks due to their similar business models and industry dominance.

Digital Realty Trust or Equinix?

When comparing Digital Realty Trust and Equinix, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Digital Realty Trust and Equinix.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Digital Realty Trust has a dividend yield of 2.61%, while Equinix has a dividend yield of 1.75%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Digital Realty Trust reports a 5-year dividend growth of 3.85% year and a payout ratio of 370.16%. On the other hand, Equinix reports a 5-year dividend growth of 9.70% year and a payout ratio of 154.57%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Digital Realty Trust P/E ratio at 139.10 and Equinix's P/E ratio at 88.06. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Digital Realty Trust P/B ratio is 2.89 while Equinix's P/B ratio is 6.85.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Digital Realty Trust has seen a 5-year revenue growth of 0.24%, while Equinix's is 0.38%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Digital Realty Trust's ROE at 2.21% and Equinix's ROE at 8.34%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $186.50 for Digital Realty Trust and $972.73 for Equinix. Over the past year, Digital Realty Trust's prices ranged from $130.00 to $198.00, with a yearly change of 52.31%. Equinix's prices fluctuated between $684.14 and $994.03, with a yearly change of 45.30%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.