Reviewing Atlas Energy Solutions (NYSE:AESI) and DT Midstream (NYSE:DTM)

Atlas Energy Solutions (NYSE:AESI) and DT Midstream (NYSE:DTM) are both energy companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, profitability, institutional ownership, risk, dividends, valuation and earnings.

Institutional and Insider Ownership

34.6% of Atlas Energy Solutions shares are held by institutional investors. Comparatively, 81.5% of DT Midstream shares are held by institutional investors. 16.0% of Atlas Energy Solutions shares are held by insiders. Comparatively, 0.3% of DT Midstream shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Atlas Energy Solutions and DT Midstream”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Atlas Energy Solutions	$1.06 billion	1.26	$59.94 million	$0.14	77.11
DT Midstream	$981.00 million	10.89	$354.00 million	$3.73	28.20

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

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Atlas Energy Solutions and DT Midstream, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Atlas Energy Solutions	0	7	4	0	2.36
DT Midstream	2	4	6	0	2.33

Atlas Energy Solutions currently has a consensus price target of $18.83, suggesting a potential upside of 74.46%. DT Midstream has a consensus price target of $110.67, suggesting a potential upside of 5.22%. Given Atlas Energy Solutions’ stronger consensus rating and higher probable upside, analysts plainly believe Atlas Energy Solutions is more favorable than DT Midstream.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Atlas Energy Solutions	1.20%	3.11%	1.71%
DT Midstream	33.90%	8.48%	4.13%

Volatility & Risk

Atlas Energy Solutions has a beta of 1.19, indicating that its stock price is 19% 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.

Dividends

Atlas Energy Solutions pays an annual dividend of $1.00 per share and has a dividend yield of 9.3%. DT Midstream pays an annual dividend of $3.28 per share and has a dividend yield of 3.1%. Atlas Energy Solutions pays out 714.3% 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 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. Atlas Energy Solutions has increased its dividend for 2 consecutive years and DT Midstream has increased its dividend for 2 consecutive years.

Summary

DT Midstream beats Atlas Energy Solutions on 9 of the 16 factors compared between the two stocks.

About Atlas Energy Solutions

Atlas Energy Solutions Inc. engages in the production, processing, and sale of mesh and sand that are used as a proppant during the well completion process in the Permian Basin of Texas and New Mexico. The company provides transportation and logistics, storage solutions, and contract labor services. It sells its products and services to oil and natural gas exploration and production companies, and oilfield services companies. Atlas Energy Solutions Inc. was founded in 2017 and is headquartered in Austin, 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.