Head-To-Head Analysis: DT Midstream (DTM) vs. The Competition

DT Midstream (NYSE:DTM – Get Rating) is one of 39 publicly-traded companies in the “Natural gas transmission” industry, but how does it contrast to its competitors? We will compare DT Midstream to similar companies based on the strength of its earnings, institutional ownership, dividends, profitability, analyst recommendations, valuation and risk.

Dividends

DT Midstream pays an annual dividend of $2.56 per share and has a dividend yield of 4.4%. DT Midstream pays out 80.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Natural gas transmission” companies pay a dividend yield of 6.4% and pay out 128.3% of their earnings in the form of a dividend.

Profitability

This table compares DT Midstream and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
DT Midstream	36.13%	8.28%	4.09%
DT Midstream Competitors	15.18%	8.63%	3.92%

Valuation and Earnings

This table compares DT Midstream and its competitors revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
DT Midstream	$840.00 million	$307.00 million	18.24
DT Midstream Competitors	$7.44 billion	$645.47 million	24.43

DT Midstream’s competitors have higher revenue and earnings than DT Midstream. DT Midstream is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Insider & Institutional Ownership

76.7% of DT Midstream shares are held by institutional investors. Comparatively, 47.4% of shares of all “Natural gas transmission” companies are held by institutional investors. 6.3% of shares of all “Natural gas transmission” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations and price targets for DT Midstream and its competitors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DT Midstream	1	3	5	0	2.44
DT Midstream Competitors	481	2406	2965	144	2.46

DT Midstream currently has a consensus target price of $56.86, indicating a potential downside of 2.61%. As a group, “Natural gas transmission” companies have a potential upside of 1.30%. Given DT Midstream’s competitors stronger consensus rating and higher possible upside, analysts clearly believe DT Midstream has less favorable growth aspects than its competitors.

Summary

DT Midstream competitors beat DT Midstream on 9 of the 14 factors compared.

About DT Midstream (Get Rating)

DT Midstream, Inc. provides integrated natural gas services in the United States. The company operates through two segments, Pipeline and Gathering. It develops, owns, and operates an integrated portfolio of interstate pipelines, intrastate pipelines, storage systems, lateral pipelines, gathering systems, related treatment plants, and compression and surface facilities. The company engages in the transportation and storage of natural gas for intermediate and end user customers; and collecting natural gas from points at or near customers' wells for delivery to plants for processing, to gathering pipelines for gathering, or to pipelines for transportation, as well as offers compression, dehydration, gas treatment, water impoundment, water storage, water transportation, and sand mining services. It serves natural gas producers, local distribution companies, electric power generators, industrials, and national marketers. The company was incorporated in 2021 and is headquartered in Detroit, Michigan.

Want More Great Investing Ideas?