Better Buy: Digital Realty Trust or Equinix?
When it comes to data-center real estate investment trusts (REITs), there are only two pure-play stocks for investors to choose from: Digital Realty Trust (NYSE: DLR) and Equinix (NASDAQ: EQIX). Rising interest rates and a weakening economy have pushed both companies' share prices down 43% and 22% respectively this year.
Because long-term trends favor this fast-growing industry, an investment in data-center REITs at today's discounted pricing could pay off handsomely 10 to 20 years from now. If you're wondering which stock is worthy of your investment dollars, here's a closer look at each company to determine which is the better buy of the two.
Both companies have a global reach, with their portfolios spanning multiple continents and major metro markets. Digital Realty Trust has more data-center facilities in its portfolio, roughly 300 in 26 countries, while Equinix has 249 in 32 countries. Digital Realty Trust wholly owns its assets, leasing space to about 4,000 tenants around the world. Equinix owns just 54% of its properties, which are leased to roughly 10,000 tenants. The rest are leased from other data center providers, including Digital Realty Trust.
Source Fool.com
