DT Midstream (DTM) versus The Competition Financial Analysis

DT Midstream (NYSE:DTMGet Rating) is one of 39 public companies in the “Natural gas transmission” industry, but how does it weigh in compared to its peers? We will compare DT Midstream to similar businesses based on the strength of its earnings, dividends, analyst recommendations, risk, profitability, valuation and institutional ownership.

Profitability

This table compares DT Midstream and its peers’ 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 13.71% 8.63% 3.92%

Analyst Ratings

This is a summary of current recommendations for DT Midstream and its peers, as provided 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 479 2399 2964 142 2.46

DT Midstream currently has a consensus target price of $56.86, indicating a potential upside of 2.96%. As a group, “Natural gas transmission” companies have a potential upside of 7.91%. Given DT Midstream’s peers stronger consensus rating and higher possible upside, analysts clearly believe DT Midstream has less favorable growth aspects than its peers.

Insider & Institutional Ownership

76.7% of DT Midstream shares are owned by institutional investors. Comparatively, 47.4% of shares of all “Natural gas transmission” companies are owned by institutional investors. 6.2% of shares of all “Natural gas transmission” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares DT Midstream and its peers top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
DT Midstream $840.00 million $307.00 million 17.28
DT Midstream Competitors $7.25 billion $612.05 million 23.82

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

Dividends

DT Midstream pays an annual dividend of $2.56 per share and has a dividend yield of 4.6%. 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 6.7% and pay out 128.3% of their earnings in the form of a dividend.

Summary

DT Midstream peers 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.

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