Contrasting DT Midstream (NYSE:DTM) and Summit Midstream (NYSE:SMC)

Summit Midstream (NYSE:SMC) and DT Midstream (NYSE:DTM) are both oils/energy companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, risk, profitability, earnings, analyst recommendations, institutional ownership and valuation.

Insider & Institutional Ownership

43.0% of Summit Midstream shares are held by institutional investors. Comparatively, 81.5% of DT Midstream shares are held by institutional investors. 5.3% of Summit Midstream shares are held by company insiders. Comparatively, 0.0% of DT Midstream shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Summit Midstream and DT Midstream”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Summit Midstream	$449.92 million	0.83	-$38.95 million	($12.81)	-2.75
DT Midstream	$976.00 million	10.20	$384.00 million	$4.11	24.93

DT Midstream has higher revenue and earnings than Summit Midstream. Summit Midstream is trading at a lower price-to-earnings ratio than DT Midstream, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Summit Midstream and DT Midstream’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Summit Midstream	-23.01%	0.71%	0.22%
DT Midstream	41.19%	9.31%	4.53%

Analyst Ratings

This is a summary of current ratings and price targets for Summit Midstream and DT Midstream, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Summit Midstream	0	0	0	0	0.00
DT Midstream	2	4	4	0	2.20

DT Midstream has a consensus target price of $88.89, suggesting a potential downside of 13.26%. Given DT Midstream’s stronger consensus rating and higher possible upside, analysts clearly believe DT Midstream is more favorable than Summit Midstream.

Risk and Volatility

Summit Midstream has a beta of 2.39, suggesting that its share price is 139% more volatile than the S&P 500. Comparatively, DT Midstream has a beta of 0.77, suggesting that its share price is 23% less volatile than the S&P 500.

Summary

DT Midstream beats Summit Midstream on 12 of the 14 factors compared between the two stocks.

About Summit Midstream

Summit Midstream Corporation focuses on owning, developing, and operating midstream energy infrastructure assets primarily shale formations in the continental United States. It operates natural gas, crude oil, and produced water gathering systems in four unconventional resource basins, including the Williston Basin in North Dakota, which includes the Bakken and Three Forks shale formations; the Denver-Julesburg Basin that consists of the Niobrara and Codell shale formations in Colorado and Wyoming; the Fort Worth Basin in Texas, which comprises the Barnett Shale formation; and the Piceance Basin in Colorado, which includes the Mesaverde formation, as well as the emerging Mancos and Niobrara Shale formations. It serves natural gas and crude oil producers. Summit Midstream Corporation was founded in 2012 and is based in Houston, Texas.

About DT Midstream

DT Midstream, Inc., together with its subsidiaries, provides integrated natural gas services in the United States. The company operates through two segments, Pipeline and Gathering. The Pipeline segment owns and operates interstate and intrastate natural gas pipelines, storage systems, and natural gas gathering lateral pipelines. This segment also engages in the transportation and storage of natural gas for intermediate and end-user customers. The Gathering segment owns and operates gas gathering systems. This segment is involved in the collection of natural gas for delivery to plants for treating, to gathering pipelines for further gathering, or to pipelines for transportation; and provision of associated ancillary services, including compression, dehydration, gas treatment, water impoundment, water transportation, water disposal, and sand mining. It serves natural gas producers, local distribution companies, electric power generators, industrials, and national marketers. The company was incorporated in 2021 and is headquartered in Detroit, Michigan.