DT Midstream (NYSE:DTM) & National Fuel Gas (NYSE:NFG) Head-To-Head Analysis

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

Volatility and Risk

DT Midstream has a beta of 0.78, meaning that its stock price is 22% less volatile than the S&P 500. Comparatively, National Fuel Gas has a beta of 0.62, meaning that its stock price is 38% less volatile than the S&P 500.

Dividends

DT Midstream pays an annual dividend of $3.28 per share and has a dividend yield of 3.3%. National Fuel Gas pays an annual dividend of $2.14 per share and has a dividend yield of 2.4%. DT Midstream pays out 89.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. National Fuel Gas pays out 497.7% 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 and National Fuel Gas has raised its dividend for 55 consecutive years. DT Midstream is clearly the better dividend stock, given its higher yield and lower payout ratio.

Earnings & Valuation

This table compares DT Midstream and National Fuel Gas”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DT Midstream	$981.00 million	10.43	$354.00 million	$3.67	27.44
National Fuel Gas	$1.94 billion	4.08	$77.51 million	$0.43	204.26

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

Institutional and Insider Ownership

81.5% of DT Midstream shares are held by institutional investors. Comparatively, 74.0% of National Fuel Gas shares are held by institutional investors. 0.3% of DT Midstream shares are held by company insiders. Comparatively, 1.4% of National Fuel Gas shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares DT Midstream and National Fuel Gas’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
DT Midstream	34.96%	8.46%	4.12%
National Fuel Gas	1.91%	18.55%	6.34%

Analyst Recommendations

This is a summary of current ratings for DT Midstream and National Fuel Gas, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DT Midstream	2	3	6	0	2.36
National Fuel Gas	0	1	2	1	3.00

DT Midstream currently has a consensus target price of $109.27, indicating a potential upside of 8.51%. National Fuel Gas has a consensus target price of $95.33, indicating a potential upside of 8.54%. Given National Fuel Gas’ stronger consensus rating and higher possible upside, analysts clearly believe National Fuel Gas is more favorable than DT Midstream.

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.

About National Fuel Gas

National Fuel Gas Company operates as a diversified energy company. It operates through four segments: Exploration and Production, Pipeline and Storage, Gathering, and Utility. The Exploration and Production segment explores for, develops, and produces natural gas and oil. The Pipeline and Storage segment provides interstate natural gas transportation services through an integrated gas pipeline system in Pennsylvania and New York; and owns and operates underground natural gas storage fields. This segment also transports natural gas for National Fuel Gas Distribution Corporation, as well as for other utilities, industrial companies, and power producers in New York State. The Gathering segment builds, owns, and operates natural gas processing and pipeline gathering facilities in the Appalachian region, as well as provides gathering services to Seneca. The Utility segment sells natural gas or provides natural gas utility services to various customers in Buffalo, Niagara Falls, and Jamestown, New York; and Erie and Sharon, Pennsylvania. National Fuel Gas Company was incorporated in 1902 and is headquartered in Williamsville, New York.