DT Midstream (NYSE:DTM – Get Free Report) and Vitesse Energy (NYSE:VTS – Get Free Report) are both energy companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, risk, earnings, institutional ownership, profitability and dividends.
Profitability
This table compares DT Midstream and Vitesse Energy’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| DT Midstream | 35.36% | 9.59% | 4.62% |
| Vitesse Energy | -15.43% | 0.27% | 0.18% |
Analyst Ratings
This is a breakdown of current recommendations for DT Midstream and Vitesse Energy, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| DT Midstream | 1 | 4 | 10 | 0 | 2.60 |
| Vitesse Energy | 1 | 1 | 3 | 0 | 2.40 |
DT Midstream presently has a consensus target price of $151.00, indicating a potential upside of 28.72%. Vitesse Energy has a consensus target price of $20.50, indicating a potential upside of 39.86%. Given Vitesse Energy’s higher probable upside, analysts clearly believe Vitesse Energy is more favorable than DT Midstream.
Dividends
DT Midstream pays an annual dividend of $3.52 per share and has a dividend yield of 3.0%. Vitesse Energy pays an annual dividend of $1.75 per share and has a dividend yield of 11.9%. DT Midstream pays out 76.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Vitesse Energy pays out -530.3% of its earnings in the form of a dividend. DT Midstream has raised its dividend for 2 consecutive years and Vitesse Energy has raised its dividend for 2 consecutive years. Vitesse Energy is clearly the better dividend stock, given its higher yield and lower payout ratio.
Volatility and Risk
DT Midstream has a beta of 0.73, meaning that its share price is 27% less volatile than the S&P 500. Comparatively, Vitesse Energy has a beta of 0.56, meaning that its share price is 44% less volatile than the S&P 500.
Insider & Institutional Ownership
81.5% of DT Midstream shares are held by institutional investors. Comparatively, 51.6% of Vitesse Energy shares are held by institutional investors. 0.5% of DT Midstream shares are held by insiders. Comparatively, 13.9% of Vitesse Energy shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Valuation and Earnings
This table compares DT Midstream and Vitesse Energy”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| DT Midstream | $1.24 billion | 9.63 | $441.00 million | $4.60 | 25.50 |
| Vitesse Energy | $273.99 million | 2.25 | $25.28 million | ($0.33) | -44.42 |
DT Midstream has higher revenue and earnings than Vitesse Energy. Vitesse Energy 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 Vitesse Energy on 11 of the 16 factors compared between the two stocks.
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 Vitesse Energy
Vitesse Energy, Inc., together with its subsidiaries, engages in the acquisition, development, and production of non-operated oil and natural gas properties in the United States. It owns and acquires non-operated working interest and royalty interest ownership in the Williston Basin properties located in North Dakota and Montana. The company also owns non-operated interests in the Central Rockies properties located in Colorado and Wyoming. Vitesse Energy, Inc. was founded in 2014 and is based in Centennial, Colorado.
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