Reviewing AltaGas (OTCMKTS:ATGFF) and DHT (NYSE:DHT)

AltaGas (OTCMKTS:ATGFF) and DHT (NYSE:DHT) are both energy companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, risk, dividends, institutional ownership, analyst recommendations, profitability and earnings.

Dividends

AltaGas pays an annual dividend of $1.50 per share and has a dividend yield of 7.0%. DHT pays an annual dividend of $0.88 per share and has a dividend yield of 8.0%. AltaGas pays out 136.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. DHT pays out 88.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. DHT has increased its dividend for 1 consecutive years. DHT is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider and Institutional Ownership

28.7% of AltaGas shares are held by institutional investors. Comparatively, 58.5% of DHT shares are held by institutional investors. 1.6% of DHT shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares AltaGas and DHT’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AltaGas	N/A	N/A	N/A
DHT	28.78%	15.52%	10.86%

Analyst Ratings

This is a summary of current ratings and recommmendations for AltaGas and DHT, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AltaGas	0	0	0	0	N/A
DHT	0	1	2	0	2.67

AltaGas presently has a consensus target price of $26.25, suggesting a potential upside of 22.61%. DHT has a consensus target price of $14.00, suggesting a potential upside of 26.58%. Given DHT’s higher probable upside, analysts plainly believe DHT is more favorable than AltaGas.

Valuation and Earnings

This table compares AltaGas and DHT’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AltaGas	N/A	N/A	N/A	$1.10	19.49
DHT	$560.56 million	3.18	$161.35 million	$0.99	11.17

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

Summary

DHT beats AltaGas on 11 of the 13 factors compared between the two stocks.

About AltaGas

AltaGas Ltd. operates as an energy infrastructure company in North America. The company operates through Utilities and Midstream segments. The Utilities segment owns and operates franchised, cost-of-service, rate-regulated natural gas distribution and storage utilities in Maryland, Virginia, Delaware, Pennsylvania, Ohio, and the District of Columbia serving approximately 1.6 million customers. This segment also provides interstate natural gas transportation and storage services. The Midstream segment engages in the natural gas gathering, processing, and extraction with 1.2 billion cubic feet per day (Bcf/d) of extraction processing capacity and approximately 1.2 Bcf/d of raw field gas processing capacity; fractionation and liquids handling business; and natural gas and natural gas liquids marketing activities. It also engages in LPG exports and distribution, logistics, trucking and rail terminals, and liquid storage businesses. In addition, the company operates gas-fired power generation and distribution assets with a generating capacity of 508 megawatt of power in California. It serves residential, commercial, and industrial customers. AltaGas Ltd. was founded in 1994 and is headquartered in Calgary, Canada.

About DHT

DHT Holdings, Inc., through its subsidiaries, owns and operates crude oil tankers primarily in Monaco, Singapore, and Norway. The company also offers technical management services. As of March 15, 2024, it had a fleet of 24 very large crude carriers. The company was incorporated in 2005 and is headquartered in Hamilton, Bermuda.