DHT (NYSE:DHT) versus AltaGas (OTCMKTS:ATGFF) Critical Comparison

AltaGas (OTCMKTS:ATGFF) and DHT (NYSE:DHT) are both energy companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, risk, earnings, analyst recommendations and profitability.

Institutional & Insider Ownership

28.7% of AltaGas shares are held by institutional investors. Comparatively, 58.5% of DHT shares are held by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Dividends

AltaGas pays an annual dividend of $1.50 per share and has a dividend yield of 7.2%. DHT pays an annual dividend of $0.88 per share and has a dividend yield of 7.8%. AltaGas pays out 136.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. DHT pays out 88.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. DHT has increased its dividend for 1 consecutive years. DHT is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Earnings & Valuation

This table compares AltaGas and DHT’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AltaGas	N/A	N/A	N/A	$1.10	19.12
DHT	$560.56 million	3.24	$161.35 million	$0.99	11.36

DHT has higher revenue and earnings than AltaGas. DHT is trading at a lower price-to-earnings ratio than AltaGas, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares AltaGas and DHT’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AltaGas	N/A	N/A	N/A
DHT	28.78%	15.52%	10.86%

Analyst Ratings

This is a breakdown of current ratings and recommmendations for AltaGas and DHT, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AltaGas	0	0	0	0	N/A
DHT	0	1	2	0	2.67

AltaGas currently has a consensus price target of $26.25, suggesting a potential upside of 25.00%. DHT has a consensus price target of $14.00, suggesting a potential upside of 24.50%. Given AltaGas’ higher probable upside, research analysts clearly believe AltaGas is more favorable than DHT.

Summary

DHT beats AltaGas on 9 of the 12 factors compared between the two stocks.

About AltaGas

AltaGas Ltd. operates as an energy infrastructure company in North America. The company operates through Utilities and Midstream segments. The Utilities segment owns and operates franchised, cost-of-service, rate-regulated natural gas distribution and storage utilities in Maryland, Virginia, Delaware, Pennsylvania, Ohio, and the District of Columbia serving approximately 1.6 million customers. This segment also provides interstate natural gas transportation and storage services. The Midstream segment engages in the natural gas gathering, processing, and extraction with 1.2 billion cubic feet per day (Bcf/d) of extraction processing capacity and approximately 1.2 Bcf/d of raw field gas processing capacity; fractionation and liquids handling business; and natural gas and natural gas liquids marketing activities. It also engages in LPG exports and distribution, logistics, trucking and rail terminals, and liquid storage businesses. In addition, the company operates gas-fired power generation and distribution assets with a generating capacity of 508 megawatt of power in California. It serves residential, commercial, and industrial customers. AltaGas Ltd. was founded in 1994 and is headquartered in Calgary, Canada.

About DHT

DHT Holdings, Inc., through its subsidiaries, owns and operates crude oil tankers primarily in Monaco, Singapore, and Norway. The company also offers technical management services. As of March 15, 2024, it had a fleet of 24 very large crude carriers. The company was incorporated in 2005 and is headquartered in Hamilton, Bermuda.