DLR vs AMT

For growth investors, Digital Realty Trust, Inc.

(DLR) is the stronger pick with 10. 0% revenue growth year-over-year, versus 5. 1% for American Tower Corporation (AMT). American Tower Corporation (AMT) offers the better valuation at 33. 0x trailing P/E (27. 2x forward), making it the more compelling value choice. Analysts rate Digital Realty Trust, Inc. (DLR) a "Buy" — based on 48 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, American Tower Corporation (AMT) is the cheapest at 33.

0x versus Digital Realty Trust, Inc. at 54. 9x. On forward P/E, American Tower Corporation is actually cheaper at 27. 2x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Digital Realty Trust, Inc. wins at 3. 35x versus American Tower Corporation's 3. 72x.

Over the past 5 years, Digital Realty Trust, Inc.

(DLR) delivered a total return of +47. 1%, compared to -15. 7% for American Tower Corporation (AMT). Over 10 years, the gap is even starker: DLR returned +163. 8% versus AMT's +113. 0%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), American Tower Corporation (AMT) is the lower-risk stock at -0.

04β versus Digital Realty Trust, Inc. 's 0. 77β — meaning DLR is approximately -2159% more volatile than AMT relative to the S&P 500. On balance sheet safety, Digital Realty Trust, Inc. (DLR) carries a lower debt/equity ratio of 97% versus 4% for American Tower Corporation — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Digital Realty Trust, Inc.

(DLR) is pulling ahead at 10. 0% versus 5. 1% for American Tower Corporation (AMT). On earnings-per-share growth, the picture is similar: Digital Realty Trust, Inc. grew EPS 122. 4% year-over-year, compared to 11. 8% for American Tower Corporation. Over a 3-year CAGR, DLR leads at 9. 2% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

American Tower Corporation (AMT) is the more profitable company, earning 23.

8% net margin versus 21. 4% for Digital Realty Trust, Inc. — meaning it keeps 23. 8% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: AMT leads at 45. 8% versus 10. 8% for DLR. At the gross margin level — before operating expenses — AMT leads at 73. 7%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, Digital Realty Trust, Inc. (DLR) is the more undervalued stock at a PEG of 3. 35x versus American Tower Corporation's 3. 72x. Both stocks trade at elevated growth-adjusted valuations, so expected growth needs to materialise. On forward earnings alone, American Tower Corporation (AMT) trades at 27. 2x forward P/E versus 97. 2x for Digital Realty Trust, Inc. — 70. 1x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for AMT: 21. 5% to $216. 33.

All stocks in this comparison pay dividends.

American Tower Corporation (AMT) offers the highest yield at 3. 8%, versus 2. 5% for Digital Realty Trust, Inc. (DLR).

For long-horizon retirement investors, American Tower Corporation (AMT) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β -0.

04), 3. 8% yield, +113. 0% 10Y return). Both have compounded well over 10 years (AMT: +113. 0%, DLR: +163. 8%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Real Estate sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

In terms of investment character: DLR is a mid-cap quality compounder stock; AMT is a mid-cap income-oriented stock. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.