Head-To-Head Review: Prairie Operating (NASDAQ:PROP) & DT Midstream (NYSE:DTM)

Prairie Operating (NASDAQ:PROP) and DT Midstream (NYSE:DTM) are both energy companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, profitability, institutional ownership, dividends, valuation and risk.

Volatility & Risk

Prairie Operating has a beta of 2.01, indicating that its stock price is 101% more volatile than the S&P 500. Comparatively, DT Midstream has a beta of 0.77, indicating that its stock price is 23% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings for Prairie Operating and DT Midstream, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Prairie Operating	0	1	4	0	2.80
DT Midstream	2	3	6	0	2.36

Prairie Operating presently has a consensus price target of $8.50, suggesting a potential upside of 209.09%. DT Midstream has a consensus price target of $110.9091, suggesting a potential upside of 7.33%. Given Prairie Operating’s stronger consensus rating and higher possible upside, research analysts plainly believe Prairie Operating is more favorable than DT Midstream.

Earnings & Valuation

This table compares Prairie Operating 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
Prairie Operating	$7.94 million	17.41	-$40.91 million	($3.00)	-0.92
DT Midstream	$981.00 million	10.70	$354.00 million	$3.73	27.70

DT Midstream has higher revenue and earnings than Prairie Operating. Prairie Operating 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 Prairie Operating and DT Midstream’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Prairie Operating	N/A	21.04%	2.69%
DT Midstream	33.90%	8.48%	4.13%

Insider & Institutional Ownership

34.3% of Prairie Operating shares are owned by institutional investors. Comparatively, 81.5% of DT Midstream shares are owned by institutional investors. 15.4% of Prairie Operating shares are owned by insiders. Comparatively, 0.3% of DT Midstream shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

DT Midstream beats Prairie Operating on 8 of the 14 factors compared between the two stocks.

About Prairie Operating

Prairie Operating Co., an independent energy company, engages in the development, exploration, and production of oil, natural gas, and natural gas liquids in the United States. The company holds assets in the Denver-Julesburg Basin in Colorado; and the Niobrara and Codell formations. Prairie Operating Co. is based in Houston Texas.

About DT Midstream

DT Midstream, Inc., together with its subsidiaries, provides integrated natural gas services in the United States. The company operates through two segments, Pipeline and Gathering. The Pipeline segment owns and operates interstate and intrastate natural gas pipelines, storage systems, and natural gas gathering lateral pipelines. This segment also engages in the transportation and storage of natural gas for intermediate and end-user customers. The Gathering segment owns and operates gas gathering systems. This segment is involved in the collection of natural gas for delivery to plants for treating, to gathering pipelines for further gathering, or to pipelines for transportation; and provision of associated ancillary services, including compression, dehydration, gas treatment, water impoundment, water transportation, water disposal, and sand mining. 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.