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 $12.1B against $8.7B — 1.4× the size. Kinetik Holdings Inc. trades at the lower P/E: 19.8× against 26.9×. DT Midstream, Inc. grew revenue faster over the last twelve months: 18.1% against 14.2%. DT Midstream, Inc. has the higher net margin (35.7% vs 10.4%) and the higher return on invested capital (5.03% vs 4.47%). Both pay a dividend; Kinetik Holdings Inc. yields more (5.80% vs 2.80%). Across the 22 metrics below, DT Midstream, Inc. leads on 12 and Kinetik Holdings Inc. on 10.

Valuation

Metric DTM KNTK Oil & Gas Midstream median
P/E 26.94 19.82 12.77
P/S 9.63 2.20 2.36
P/B 2.56 n/m 2.09
Price to free cash flow 26.28 33.68 9.71
EV/EBITDA 16.89 13.19 8.30
EV/Sales 12.06 4.30 3.88
Earnings yield 3.71% 5.05% 7.15%
Free cash flow yield 3.81% 2.97% 6.86%

Profitability

Metric DTM KNTK Oil & Gas Midstream median
Gross margin 100.00% 40.92% 56.58%
Operating margin 49.62% 10.52% 34.18%
Net margin 35.73% 10.41% 22.50%
Free cash flow margin 36.64% 6.54% 13.70%
Return on equity 9.61% (14.28%) 14.65%
Return on assets 4.64% 2.74% 5.00%
Return on invested capital 5.03% 4.47% 6.13%

Growth

Metric DTM KNTK Oil & Gas Midstream median
Revenue growth (TTM) 18.12% 14.15% 15.60%
EPS growth (last fiscal year) 19.44% 157.84% (7.86%)
Revenue growth, 5-year CAGR 10.51% 33.88% 9.59%
Net income growth, 5-year CAGR 7.17% 126.35% 0.00%

Health

Metric DTM KNTK Oil & Gas Midstream median
Debt to equity 0.68 (3.34) 0.78
Current ratio 1.37 0.68 1.19
Net debt to EBITDA 3.68 6.79 3.42

Dividend

Metric DTM KNTK Oil & Gas Midstream median
Dividend yield 2.80% 5.80% 4.54%
Payout ratio 0.76 1.16 0.76

Size

Metric DTM KNTK Oil & Gas Midstream median
Market cap 12.12b 8.68b 3.73b

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