DT Midstream, Inc. (DTM) vs Western Midstream Partners, LP (WES)

DT Midstream, Inc. and Western Midstream Partners, LP are both Oil & Gas Midstream companies. Western Midstream Partners, LP is the larger, with a market value of $18.7B against $12.7B — 1.5× the size. Western Midstream Partners, LP trades at the lower P/E: 14.3× against 26.7×. DT Midstream, Inc. grew revenue faster over the last twelve months: 18.1% against 18.0%. DT Midstream, Inc. has the higher net margin (35.7% vs 29.0%) and the lower return on invested capital (5.03% vs 8.16%). Both pay a dividend; Western Midstream Partners, LP yields more (8.96% vs 5.34%). Across the 23 metrics below, Western Midstream Partners, LP leads on 13 and DT Midstream, Inc. on 10.

Valuation

Metric DTM WES Oil & Gas Midstream median
P/E 26.69 14.29 13.19
P/S 9.54 4.19 2.60
P/B 2.54 4.12 2.08
Price to free cash flow 26.03 15.35 10.14
EV/EBITDA 16.76 10.75 8.11
EV/Sales 11.97 6.26 3.89
Earnings yield 3.75% 7.00% 6.83%
Free cash flow yield 3.84% 6.51% 6.94%

Profitability

Metric DTM WES Oil & Gas Midstream median
Gross margin 100.00% 92.08% 58.81%
Operating margin 49.62% 40.23% 32.14%
Net margin 35.73% 29.00% 21.16%
Free cash flow margin 36.64% 27.30% 10.15%
Return on equity 9.61% 32.48% 11.30%
Return on assets 4.64% 8.82% 5.00%
Return on invested capital 5.03% 8.16% 6.13%

Growth

Metric DTM WES Oil & Gas Midstream median
Revenue growth (TTM) 18.12% 18.00% 15.44%
EPS growth (last fiscal year) 19.44% (25.87%) —
Revenue growth, 5-year CAGR 10.51% 6.75% 8.96%
Net income growth, 5-year CAGR 7.17% 17.48% 0.00%

Health

Metric DTM WES Oil & Gas Midstream median
Debt to equity 0.68 2.06 0.78
Current ratio 1.37 0.91 1.19
Net debt to EBITDA 3.68 3.37 3.42

Dividend

Metric DTM WES Oil & Gas Midstream median
Dividend yield 5.34% 8.96% 7.29%
Payout ratio 0.70 — 0.64

Size

Metric DTM WES Oil & Gas Midstream median
Market cap 12.73b 18.74b 3.61b

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