DT Midstream, Inc. (DTM) vs Kinetik Holdings Inc. (KNTK)

DT Midstream, Inc. and Kinetik Holdings Inc. are both Oil & Gas Midstream companies. DT Midstream, Inc. is the larger, with a market value of $11.5B against $8.0B — 1.4× the size. Kinetik Holdings Inc. trades at the lower P/E: 16.3× against 24.4×. Kinetik Holdings Inc. grew revenue faster over the last twelve months: 15.8% against 13.4%. DT Midstream, Inc. has the higher net margin (35.4% vs 0.00%) and the lower return on invested capital (5.14% vs 5.82%). Both pay a dividend; Kinetik Holdings Inc. yields more (6.57% vs 3.05%). Across the 22 metrics below, Kinetik Holdings Inc. leads on 14 and DT Midstream, Inc. on 8.

Valuation

Metric DTM KNTK Oil & Gas Midstream median
P/E 24.38 16.33 11.68
P/S 8.67 1.98 2.39
P/B 2.33 n/m 1.68
Price to free cash flow 21.68 16.68 8.52
EV/EBITDA 15.40 12.85 9.03
EV/Sales 10.98 3.97 3.43
Earnings yield 4.10% 6.12% 7.78%
Free cash flow yield 4.61% 6.00% 7.11%

Profitability

Metric DTM KNTK Oil & Gas Midstream median
Gross margin 100.00% 41.01% 54.87%
Operating margin 49.40% 12.17% 34.73%
Net margin 35.36% 0.00% 20.12%
Free cash flow margin 40.02% 11.88% 14.43%
Return on equity 9.61% 0.00% 11.73%
Return on assets 4.62% 0.00% 4.43%
Return on invested capital 5.14% 5.82% 6.10%

Growth

Metric DTM KNTK Oil & Gas Midstream median
Revenue growth (TTM) 13.36% 15.79% 14.88%
EPS growth (last fiscal year) 19.44% 157.84% (7.78%)
Revenue growth, 5-year CAGR 10.51% 33.88% 10.05%
Net income growth, 5-year CAGR 7.17% 129.65% 0.00%

Health

Metric DTM KNTK Oil & Gas Midstream median
Debt to equity 0.66 (2.93) 0.77
Current ratio 1.16 0.64 1.19
Net debt to EBITDA 3.68 6.79 3.46

Dividend

Metric DTM KNTK Oil & Gas Midstream median
Dividend yield 3.05% 6.57% 4.94%
Payout ratio 0.75 1.08 0.73

Size

Metric DTM KNTK Oil & Gas Midstream median
Market cap 11.52b 7.98b 3.56b

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