Financial Analysis: DT Midstream (NYSE:DTM) and PostRock Energy (OTCMKTS:PSTRQ)

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

Analyst Ratings

This is a summary of recent ratings and price targets for DT Midstream and PostRock Energy, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DT Midstream	2	4	6	0	2.33
PostRock Energy	0	0	0	0	0.00

DT Midstream currently has a consensus target price of $110.67, suggesting a potential upside of 5.22%. Given DT Midstream’s stronger consensus rating and higher possible upside, equities analysts clearly believe DT Midstream is more favorable than PostRock Energy.

Volatility & Risk

DT Midstream has a beta of 0.77, meaning that its share price is 23% less volatile than the S&P 500. Comparatively, PostRock Energy has a beta of -2.53, meaning that its share price is 353% less volatile than the S&P 500.

Valuation and Earnings

This table compares DT Midstream and PostRock Energy”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DT Midstream	$981.00 million	10.89	$354.00 million	$3.73	28.20
PostRock Energy	N/A	N/A	N/A	N/A	N/A

DT Midstream has higher revenue and earnings than PostRock Energy.

Institutional & Insider Ownership

81.5% of DT Midstream shares are owned by institutional investors. 0.3% of DT Midstream shares are owned by company insiders. Comparatively, 79.2% of PostRock Energy shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
DT Midstream	33.90%	8.48%	4.13%
PostRock Energy	N/A	N/A	N/A

Summary

DT Midstream beats PostRock Energy on 9 of the 10 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 PostRock Energy

PostRock Energy Corp. engages in the acquisition, exploration, development, production, and gathering of crude oil and natural gas. It focuses on the Cherokee Basin project in southeastern Kansas, northeastern Oklahoma, and central Oklahoma. The firm also owns and operates minor oil and gas producing properties in the Appalachian Basin. The company was founded in July 2009 and is headquartered in Oklahoma City, OK.