Critical Contrast: DT Midstream (NYSE:DTM) and Summit Midstream (NYSE:SMC)

DT Midstream (NYSE:DTM) and Summit Midstream (NYSE:SMC) are both oils/energy companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, institutional ownership, risk, dividends, valuation and earnings.

Institutional and Insider Ownership

81.5% of DT Midstream shares are owned by institutional investors. Comparatively, 43.0% of Summit Midstream shares are owned by institutional investors. 0.0% of DT Midstream shares are owned by company insiders. Comparatively, 5.3% of Summit Midstream shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and price targets for DT Midstream and Summit Midstream, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DT Midstream	2	4	4	0	2.20
Summit Midstream	0	0	0	0	0.00

DT Midstream presently has a consensus price target of $88.89, suggesting a potential downside of 11.10%. Given DT Midstream’s stronger consensus rating and higher probable upside, analysts plainly believe DT Midstream is more favorable than Summit Midstream.

Volatility & Risk

DT Midstream has a beta of 0.77, meaning that its stock price is 23% less volatile than the S&P 500. Comparatively, Summit Midstream has a beta of 2.39, meaning that its stock price is 139% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
DT Midstream	41.19%	9.31%	4.53%
Summit Midstream	-23.01%	0.71%	0.22%

Valuation and Earnings

This table compares DT Midstream and Summit Midstream”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DT Midstream	$976.00 million	9.95	$384.00 million	$4.11	24.33
Summit Midstream	$449.92 million	0.86	-$38.95 million	($12.81)	-2.85

DT Midstream has higher revenue and earnings than Summit Midstream. Summit Midstream 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 Summit Midstream on 12 of the 14 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 Summit Midstream

Summit Midstream Corporation focuses on owning, developing, and operating midstream energy infrastructure assets primarily shale formations in the continental United States. It operates natural gas, crude oil, and produced water gathering systems in four unconventional resource basins, including the Williston Basin in North Dakota, which includes the Bakken and Three Forks shale formations; the Denver-Julesburg Basin that consists of the Niobrara and Codell shale formations in Colorado and Wyoming; the Fort Worth Basin in Texas, which comprises the Barnett Shale formation; and the Piceance Basin in Colorado, which includes the Mesaverde formation, as well as the emerging Mancos and Niobrara Shale formations. It serves natural gas and crude oil producers. Summit Midstream Corporation was founded in 2012 and is based in Houston, Texas.