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 $16.5B against $11.5B — 1.4× the size. Western Midstream Partners, LP trades at the lower P/E: 12.9× against 24.4×. Western Midstream Partners, LP grew revenue faster over the last twelve months: 22.3% 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 8.19%). Both pay a dividend; Western Midstream Partners, LP yields more (9.25% vs 3.05%). 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 24.38 12.86 11.68
P/S 8.67 3.61 2.39
P/B 2.33 3.80 1.68
Price to free cash flow 21.68 14.07 8.52
EV/EBITDA 15.40 10.16 9.03
EV/Sales 10.98 5.60 3.43
Earnings yield 4.10% 7.78% 7.78%
Free cash flow yield 4.61% 7.11% 7.11%

Profitability

Metric DTM WES Oil & Gas Midstream median
Gross margin 100.00% 90.96% 54.87%
Operating margin 49.40% 38.54% 34.73%
Net margin 35.36% 0.00% 20.12%
Free cash flow margin 40.02% 45.63% 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% 8.19% 6.10%

Growth

Metric DTM WES Oil & Gas Midstream median
Revenue growth (TTM) 13.36% 22.29% 14.88%
EPS growth (last fiscal year) 19.44% (25.87%) (7.78%)
Revenue growth, 5-year CAGR 10.51% 6.75% 10.05%
Net income growth, 5-year CAGR 7.17% 17.48% 0.00%

Health

Metric DTM WES Oil & Gas Midstream median
Debt to equity 0.66 2.11 0.77
Current ratio 1.16 0.81 1.19
Net debt to EBITDA 3.68 3.37 3.46

Dividend

Metric DTM WES Oil & Gas Midstream median
Dividend yield 3.05% 9.25% 4.94%
Payout ratio 0.75 1.20 0.73

Size

Metric DTM WES Oil & Gas Midstream median
Market cap 11.52b 16.47b 3.56b

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