Critical Analysis: DT Midstream (NYSE:DTM) & NGL Energy Partners (NYSE:NGL)

NGL Energy Partners (NYSE:NGLGet Rating) and DT Midstream (NYSE:DTMGet Rating) are both oils/energy companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, earnings, valuation, risk, profitability, analyst recommendations and dividends.

Insider & Institutional Ownership

30.2% of NGL Energy Partners shares are owned by institutional investors. Comparatively, 76.7% of DT Midstream shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current recommendations and price targets for NGL Energy Partners and DT Midstream, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NGL Energy Partners 1 0 0 0 1.00
DT Midstream 1 3 5 0 2.44

NGL Energy Partners currently has a consensus target price of $2.25, suggesting a potential upside of 17.49%. DT Midstream has a consensus target price of $56.57, suggesting a potential upside of 7.67%. Given NGL Energy Partners’ higher probable upside, equities analysts clearly believe NGL Energy Partners is more favorable than DT Midstream.

Earnings & Valuation

This table compares NGL Energy Partners and DT Midstream’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
NGL Energy Partners $5.23 billion 0.05 -$639.82 million ($3.75) -0.51
DT Midstream $840.00 million 6.05 $307.00 million $3.20 16.42

DT Midstream has lower revenue, but higher earnings than NGL Energy Partners. NGL Energy Partners is trading at a lower price-to-earnings ratio than DT Midstream, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares NGL Energy Partners and DT Midstream’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
NGL Energy Partners -6.04% -28.00% -2.13%
DT Midstream 36.13% 8.31% 4.10%

Summary

DT Midstream beats NGL Energy Partners on 10 of the 12 factors compared between the two stocks.

About NGL Energy Partners (Get Rating)

NGL Energy Partners LP engages in the crude oil and liquids logistics, and water solution businesses. The company's Crude Oil Logistics segment purchases crude oil from producers and marketers, and transports it to refineries for resale at pipeline injection stations, storage terminals, barge loading facilities, rail facilities, refineries, and other trade hubs; and provides storage, terminaling, and pipeline transportation services. Its Water Solutions segment transports, treats, recycles, and disposes produced and flowback water generated from oil and natural gas production; disposes solids, such as tank bottoms, and drilling fluid and muds, as well as performs truck and frac tank washouts; and sells produced water for reuse and brackish non-potable water. The company's Liquids Logistics segment supplies natural gas liquids, refined petroleum products, and biodiesel to commercial, retail, and industrial customers in the United States and Canada through its 28 terminals, third-party storage and terminal facilities, and common carrier pipelines, as well as through fleet of leased railcars. This segment is also involved in the marine export of butane through its facility located in Chesapeake, Virginia; and offers terminaling and storage services. NGL Energy Holdings LLC serves as the general partner of the company. The company was founded in 1940 and is headquartered in Tulsa, Oklahoma.

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.

Receive News & Ratings for NGL Energy Partners Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for NGL Energy Partners and related companies with MarketBeat.com's FREE daily email newsletter.