Head to Head Review: DT Midstream (NYSE:DTM) versus Mesa Royalty Trust (NYSE:MTR)

DT Midstream (NYSE:DTM) and Mesa Royalty Trust (NYSE:MTR) are both energy companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, earnings, dividends, analyst recommendations, institutional ownership, valuation and profitability.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DT Midstream	$1.31 billion	9.76	$441.00 million	$4.57	27.43
Mesa Royalty Trust	$600,000.00	6.12	$510,000.00	$0.16	12.34

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

Institutional & Insider Ownership

81.5% of DT Midstream shares are owned by institutional investors. Comparatively, 12.7% of Mesa Royalty Trust shares are owned by institutional investors. 0.5% of DT Midstream shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
DT Midstream	35.72%	9.58%	4.62%
Mesa Royalty Trust	60.59%	9.17%	8.82%

Volatility & Risk

DT Midstream has a beta of 0.72, meaning that its stock price is 28% less volatile than the S&P 500. Comparatively, Mesa Royalty Trust has a beta of 0.41, meaning that its stock price is 59% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and price targets for DT Midstream and Mesa Royalty Trust, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DT Midstream	1	4	10	0	2.60
Mesa Royalty Trust	1	0	0	0	1.00

DT Midstream currently has a consensus target price of $151.36, indicating a potential upside of 20.74%. Given DT Midstream’s stronger consensus rating and higher possible upside, research analysts clearly believe DT Midstream is more favorable than Mesa Royalty Trust.

Summary

DT Midstream beats Mesa Royalty Trust on 12 of the 14 factors compared between the two stocks.

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.

About Mesa Royalty Trust

Mesa Royalty Trust owns overriding royalty interests in various oil and gas producing properties in the United States. It holds interests in properties located in the Hugoton field of Kansas; and the San Juan Basin field of Northwestern New Mexico and Southwestern Colorado. The company was founded in 1979 and is based in Houston, Texas.