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 $12.7B against $8.5B — 1.5× the size. Kinetik Holdings Inc. trades at the lower P/E: 18.4× against 26.7×. 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 (9.21% vs 5.34%). 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 26.69 18.35 13.19
P/S 9.54 2.04 2.60
P/B 2.54 n/m 2.08
Price to free cash flow 26.03 31.19 10.14
EV/EBITDA 16.76 12.69 8.11
EV/Sales 11.97 4.14 3.89
Earnings yield 3.75% 5.45% 6.83%
Free cash flow yield 3.84% 3.21% 6.94%

Profitability

Metric DTM KNTK Oil & Gas Midstream median
Gross margin 100.00% 40.92% 58.81%
Operating margin 49.62% 10.52% 32.14%
Net margin 35.73% 10.41% 21.16%
Free cash flow margin 36.64% 6.54% 10.15%
Return on equity 9.61% (14.28%) 11.30%
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% 15.44%
EPS growth (last fiscal year) 19.44% 157.84% —
Revenue growth, 5-year CAGR 10.51% 33.88% 8.96%
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 5.34% 9.21% 7.29%
Payout ratio 0.70 1.79 0.64

Size

Metric DTM KNTK Oil & Gas Midstream median
Market cap 12.73b 8.53b 3.61b

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