DT Midstream (NYSE:DTM – Get Free Report) and KNOT Offshore Partners (NYSE:KNOP – Get Free Report) are both energy companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, risk, profitability, valuation, dividends, institutional ownership and analyst recommendations.
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for DT Midstream and KNOT Offshore Partners, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| DT Midstream | 1 | 4 | 10 | 0 | 2.60 |
| KNOT Offshore Partners | 0 | 3 | 1 | 1 | 2.60 |
DT Midstream presently has a consensus price target of $152.14, indicating a potential upside of 21.76%. KNOT Offshore Partners has a consensus price target of $14.00, indicating a potential upside of 24.61%. Given KNOT Offshore Partners’ higher probable upside, analysts plainly believe KNOT Offshore Partners is more favorable than DT Midstream.
Volatility & Risk
Insider and Institutional Ownership
81.5% of DT Midstream shares are owned by institutional investors. Comparatively, 26.8% of KNOT Offshore Partners shares are owned by institutional investors. 0.5% of DT Midstream shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Dividends
DT Midstream pays an annual dividend of $3.52 per share and has a dividend yield of 2.8%. KNOT Offshore Partners pays an annual dividend of $0.30 per share and has a dividend yield of 2.7%. DT Midstream pays out 77.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. KNOT Offshore Partners pays out 68.2% of its earnings in the form of a dividend. 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.
Profitability
This table compares DT Midstream and KNOT Offshore Partners’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| DT Midstream | 35.72% | 9.58% | 4.62% |
| KNOT Offshore Partners | 3.90% | 5.73% | 1.84% |
Earnings and Valuation
This table compares DT Midstream and KNOT Offshore Partners”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| DT Midstream | $1.24 billion | 10.25 | $441.00 million | $4.57 | 27.34 |
| KNOT Offshore Partners | $364.44 million | 1.04 | $22.96 million | $0.44 | 25.53 |
DT Midstream has higher revenue and earnings than KNOT Offshore Partners. KNOT Offshore Partners 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 KNOT Offshore Partners on 14 of the 17 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 KNOT Offshore Partners
KNOT Offshore Partners LP acquires, owns, and operates shuttle tankers under long-term charters in the North Sea and Brazil. The company provides loading, transportation, and discharge of crude oil under time charters and bareboat charters. The company was founded in 2013 and is headquartered in Aberdeen, the United Kingdom.
Receive News & Ratings for DT Midstream Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for DT Midstream and related companies with MarketBeat.com's FREE daily email newsletter.