Head-To-Head Review: DT Midstream (NYSE:DTM) vs. LandBridge (NYSE:LB)

LandBridge (NYSE:LB) and DT Midstream (NYSE:DTM) are both energy companies, but which is the superior business? We will compare the two companies based on the strength of their risk, valuation, earnings, dividends, institutional ownership, profitability and analyst recommendations.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
LandBridge	12.19%	5.63%	3.46%
DT Midstream	33.90%	8.48%	4.13%

Insider and Institutional Ownership

81.5% of DT Midstream shares are held by institutional investors. 70.4% of LandBridge shares are held by insiders. Comparatively, 0.3% of DT Midstream shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Valuation & Earnings

This table compares LandBridge and DT Midstream”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
LandBridge	$109.95 million	37.77	-$41.77 million	$3.56	15.24
DT Midstream	$981.00 million	10.92	$354.00 million	$3.73	28.26

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

Dividends

LandBridge pays an annual dividend of $0.40 per share and has a dividend yield of 0.7%. DT Midstream pays an annual dividend of $3.28 per share and has a dividend yield of 3.1%. LandBridge pays out 11.2% of its earnings in the form of a dividend. DT Midstream pays out 87.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. DT Midstream has raised its dividend for 2 consecutive years. DT Midstream is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a summary of current ratings and price targets for LandBridge and DT Midstream, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
LandBridge	1	3	4	0	2.38
DT Midstream	2	4	6	0	2.33

LandBridge currently has a consensus target price of $62.29, suggesting a potential upside of 14.82%. DT Midstream has a consensus target price of $110.67, suggesting a potential upside of 4.97%. Given LandBridge’s stronger consensus rating and higher possible upside, research analysts clearly believe LandBridge is more favorable than DT Midstream.

Volatility & Risk

LandBridge has a beta of 0.25, meaning that its share price is 75% less volatile than the S&P 500. Comparatively, DT Midstream has a beta of 0.77, meaning that its share price is 23% less volatile than the S&P 500.

Summary

DT Midstream beats LandBridge on 12 of the 17 factors compared between the two stocks.

About LandBridge

LandBridge Company LLC owns and manages land and resources to support and enhance oil and natural gas development in the United States. It owns surface acres in and around the Delaware Basin in Texas and New Mexico. The company holds a portfolio of oil and gas royalties. It also sells brackish water and other surface composite materials. The company was founded in 2021 and is based in Houston, Texas. LandBridge Company LLC operates as a subsidiary of LandBridge Holdings LLC.

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.