DLR vs IRM: Which Is the Better Buy in 2026?
Last updated August 2026
Short answer
DLR is the larger of the two ($70.93B market cap): the incumbent the market prices for continued execution (64.27x forward earnings, beta 1.05). IRM is the smaller challenger ($36.39B), cheaper on forward earnings (45.72x): more room to run, but more to prove. The real question is which set of drivers you believe, and whether owning one (or both) leaves you over-concentrated.
DLR vs IRM: the tie-breaker metrics
Same yardstick, side by side (as of August 2026). Valuation lined up like this is most meaningful for two names in the same corner of the market, which these are. Figures are approximate; verify before investing.
| Metric | DLR | IRM | What it tells you |
|---|---|---|---|
| Market cap | $70.93B | $36.39B | Size. The larger name is the incumbent; the smaller has more room to grow and more to prove. |
| Forward P/E | 64.27 | 45.72 | Valuation on next year's expected earnings, the same yardstick for both. Lower is cheaper for that growth; higher means the market is paying up. |
| Trailing P/E | 238.63 | 132.96 | Valuation on the last 12 months. A big drop from trailing to forward means the market expects earnings to jump, so more growth is already in the price. |
| Beta | 1.05 | 1.22 | Volatility vs the market. Above 1 swings harder than the index; below 1 is steadier. Higher beta means bigger drawdowns to hold through. |
| Price vs 52-week range | 68% of range | 78% of range | Where today's price sits between the 52-week low and high. Near the high is momentum with less margin of safety; near the low is out of favor or a discount, depending on why. |
Reading it: IRM is the cheaper of the two on forward earnings, but cheaper is not the same as better. Pair the valuation with growth (how far the forward P/E sits below the trailing P/E) and risk (beta) before you decide.
Before you buy: how DLR and IRM affect your concentration
The metrics above tell you which is the marginally better business. The bigger risk for most people is not picking the slightly worse stock, it is over-concentrating. DLR and IRM share themes, so owning both, or adding either to what you already hold, can quietly push a large share of your portfolio into one bet.
This is the part a generic comparison page cannot answer, because it depends on what you own. Connect your brokerage and Walnut shows your real, combined DLR and IRM exposure, flags overlap with your existing positions, and tells you if adding one would tip you past a concentration you are comfortable with, read-only by default, with your login staying at your broker. Walnut is not an investment adviser.
What does Digital Realty Trust (DLR) do?
Digital Realty Trust (NYSE: DLR) is a real estate investment trust that owns, develops, and operates carrier-neutral data centers providing colocation, interconnection, and cloud connectivity solutions. Its PlatformDigital network spans more than 300 data centers across more than 55 global markets and serves over half of Fortune 500 companies, including major cloud hyperscalers such as Microsoft Azure, Amazon Web Services, Google Cloud, and Oracle. Revenue is generated primarily through long-term leases for data center space and power, interconnection fees charged when tenants cross-connect inside facilities, and managed services, giving the business a largely recurring, contractual revenue base.
What does Iron Mountain Incorporated (IRM) do?
Iron Mountain Incorporated is a global information management company structured as a REIT, which means it must distribute most of its taxable income to shareholders to keep its tax status. Its roots are in physical records and information management (Global RIM): storing paper documents, tapes, and archives in secure facilities under long-duration contracts. That legacy business is highly recurring and cash-generative because customers rarely move their records, giving Iron Mountain low churn and steady storage-rental revenue.
DLR vs IRM: how do they differ?
Both fit overlapping themes, but they are not interchangeable. The useful comparison is which set of drivers and risks you want exposure to.
- DLR drivers: AI Infrastructure Demand Surge; Interconnection and Enterprise Growth.
- IRM drivers: Data-center and AI infrastructure buildout; Sticky, recurring records-storage base.
Which fits which kind of investor
A faster-growing, richer-valued name usually swings harder, so it suits a longer horizon and a higher tolerance for volatility; a steadier, more cash-generative business suits a more conservative or income-minded investor. The honest test is which set of risks you could hold through a drawdown: DLR's GAAP P/E ratio of roughly 47 to 53 times (depending on the exact trailing period) sits well above the North American specialized REIT industry average of approximately 29 times, leaving limited margin for error if earnings growth disappoints. For IRM, the dominant risks are financial leverage and capital intensity.
DLR or IRM: which should you pick?
Growth-minded investors who believe the theme has years to run tend to accept the richer multiple for more upside; value-minded investors lean toward the cheaper forward earnings and steadier profile. Pick DLR if you believe its drivers more; IRM if you believe its. Many investors hold both, but since they share themes, that is a concentrated bet, not diversification. Decide deliberately and check overlap. For the full detail, see the DLR and IRM guides.
DLR vs IRM: the full fundamentals
DLR. DLR's trailing P/E of roughly 47 to 53 times is elevated relative to the North American specialized REIT peer average of approximately 29 times, reflecting a growth premium tied to AI infrastructure demand. Because DLR is a REIT, investors and analysts typically weight Core FFO and Adjusted EBITDA over GAAP net income; on a Core FFO basis, the implied multiple is materially lower and more consistent with historical norms. The 2026 management guidance of $6.65 to $6.75 billion in revenue and $7.90 to $8.00 in Core FFO per share implies roughly 8 percent FFO-per-share growth, which the market appears to be pricing in at current levels.
IRM. Figures are approximate and tied to the asOf date of Jul 2026. Iron Mountain reports on a REIT basis, so AFFO (adjusted funds from operations) and payout ratio matter more than standard EPS. Revenue, yield, market cap, and analyst targets move constantly. Always verify live numbers from a primary source before making any decision.
Headline figures (approximate, 2026-06-27): DLR shows revenue (full year 2025) ~$6.1 billion, adjusted ebitda (full year 2025) ~$3.34 billion, core ffo per share (full year 2025) ~$7.39 (up ~10% YoY), trailing p/e ratio ~47 to 53x (TTM, varies by source); IRM shows revenue (ttm) Roughly $7 billion and growing at a double-digit annual pace; verify live, market cap Large cap, in the tens of billions of dollars; confirm current figure, dividend yield Approximately in the ~3% area, paid quarterly; varies with share price, verify live, business mix Legacy records storage still the largest segment; growth lines (data center, digital, ALM) roughly a third of revenue.
The bottom line: DLR vs IRM
DLR and IRM are related but distinct: same themes, different businesses and risks. Neither wins in the abstract; the right pick is whichever thesis you actually believe, sized so you are not over-concentrated in one theme. Walnut can show your combined DLR and IRM exposure against your real portfolio. It is not an investment adviser.
Wondering how DLR or IRM fits the portfolio you already own? Walnut is an AI investing app that connects your brokerage read-only and answers questions like that about your actual holdings: overlap, concentration, and how each position tracks the S&P 500. Compare the best AI portfolio analyzers or see the best AI investing apps in 2026.
Investing in Digital Realty Trust with AI
Connect the broker you already use and ask Walnut's AI how DLR fits what you actually hold: whether you own it already through a fund, what it would do to your concentration, and how it has tracked the S&P 500. Read-only by default, and you approve anything before it reaches your broker.
FAQ
What is the difference between DLR and IRM?
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Digital Realty Trust (NYSE: DLR) is a real estate investment trust that owns, develops, and operates carrier-neutral data centers providing colocation, interconnection, and cloud connectivity solutions. Iron Mountain Incorporated is a global information management company structured as a REIT, which means it must distribute most of its taxable income to shareholders to keep its tax status. They show up together because they share investment themes, but they are different businesses, so the better fit depends on which thesis you are expressing.
Is DLR or IRM the better stock?
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Neither is universally better. DLR is the larger incumbent; IRM is the smaller challenger and looks cheaper on forward earnings. Walnut is informational, not investment advice. Compare what each does, the tie-breaker metrics above, and the risks, then decide which fits your thesis and what you already own.
Which is cheaper, DLR or IRM?
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On forward P/E (as of August 2026), DLR trades at 64.27x and IRM at 45.72x, so IRM is the cheaper of the two on next year's expected earnings. A lower multiple is not automatically the better buy: a richer valuation can be justified by faster growth, and a lower one can reflect real risk. Weigh the multiple against how fast each business is compounding.
Should you own both DLR and IRM?
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Because they share themes, owning both concentrates you in that theme. That can be intentional (a focused bet) or accidental (less diversification than it looks). Walnut can show your combined exposure across both, and whether adding either over-concentrates you, before you buy.
What are the risks of DLR vs IRM?
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DLR: DLR's GAAP P/E ratio of roughly 47 to 53 times (depending on the exact trailing period) sits well above the North American specialized REIT industry average of approximately 29 times, leaving limited margin for error if earnings growth disappoints. The Altman Z-Score has flagged the company in or near financial distress territory due to its substantial long-term debt load, and interest coverage declined meaningfully in recent quarters. There is also a structural oversupply risk: if DLR and its peers expand development faster than hyperscalers commit capacity, markets like Northern Virginia could see rent pressure that compresses same-store cash NOI growth. Tariffs and geopolitical uncertainty could modestly raise construction costs, and ongoing share issuances (including an active at-the-market equity offering of up to $3 billion) are a source of dilution for existing shareholders. IRM: The dominant risks are financial leverage and capital intensity. Iron Mountain carries substantial debt and is spending heavily to build data centers, so rising interest rates, tighter credit, or slower-than-expected leasing could pressure cash flow and the dividend. The valuation already reflects optimism about the data-center growth story, which leaves the stock exposed if AI or hyperscale demand cools, lease pricing softens, or construction runs over budget. The legacy records-storage business, while sticky, faces a long-term secular decline in physical-document volumes as enterprises digitize. Competition in data centers is intense and comes from far larger, better-capitalized operators. Finally, as a REIT the shares can be sensitive to interest-rate moves, since higher yields on bonds make dividend stocks relatively less attractive.
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Walnut is informational, not investment advice. This page is descriptive and not a recommendation to buy or sell DLR or IRM; figures are approximate and dated (as of August 2026). Verify current data before investing.