Reviewing DT Midstream (NYSE:DTM) & Mesa Royalty Trust (NYSE:MTR)

Mesa Royalty Trust (NYSE:MTR) and DT Midstream (NYSE:DTM) are both energy companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, earnings, valuation, profitability, dividends, risk and analyst recommendations.

Institutional & Insider Ownership

12.7% of Mesa Royalty Trust shares are held by institutional investors. Comparatively, 81.5% of DT Midstream shares are held by institutional investors. 0.5% of DT Midstream shares are held 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Mesa Royalty Trust	60.59%	9.17%	8.82%
DT Midstream	35.36%	9.59%	4.62%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Mesa Royalty Trust and DT Midstream, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mesa Royalty Trust	1	0	0	0	1.00
DT Midstream	1	4	10	0	2.60

DT Midstream has a consensus price target of $151.00, indicating a potential upside of 29.71%. Given DT Midstream’s stronger consensus rating and higher possible upside, analysts clearly believe DT Midstream is more favorable than Mesa Royalty Trust.

Volatility & Risk

Mesa Royalty Trust has a beta of 0.38, indicating that its share price is 62% less volatile than the S&P 500. Comparatively, DT Midstream has a beta of 0.73, indicating that its share price is 27% less volatile than the S&P 500.

Valuation and Earnings

This table compares Mesa Royalty Trust 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
Mesa Royalty Trust	$600,000.00	6.09	$510,000.00	$0.16	12.28
DT Midstream	$1.24 billion	9.55	$441.00 million	$4.60	25.31

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

Summary

DT Midstream beats Mesa Royalty Trust on 12 of the 14 factors compared between the two stocks.

About Mesa Royalty Trust

Mesa Royalty Trust owns overriding royalty interests in various oil and gas producing properties in the United States. It holds interests in properties located in the Hugoton field of Kansas; and the San Juan Basin field of Northwestern New Mexico and Southwestern Colorado. The company was founded in 1979 and 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.