Analyzing Natural Resource Partners (NYSE:NRP) and DT Midstream (NYSE:DTM)

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

Analyst Ratings

This is a breakdown of current ratings and recommmendations for DT Midstream and Natural Resource Partners, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DT Midstream	1	5	8	0	2.50
Natural Resource Partners	0	1	0	0	2.00

DT Midstream currently has a consensus price target of $154.08, suggesting a potential upside of 21.24%. Given DT Midstream’s stronger consensus rating and higher probable upside, equities analysts plainly believe DT Midstream is more favorable than Natural Resource Partners.

Profitability

This table compares DT Midstream and Natural Resource Partners’ 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%
Natural Resource Partners	57.13%	16.65%	13.88%

Dividends

DT Midstream pays an annual dividend of $3.52 per share and has a dividend yield of 2.8%. Natural Resource Partners pays an annual dividend of $3.00 per share and has a dividend yield of 2.8%. DT Midstream pays out 77.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Natural Resource Partners pays out 38.3% of its earnings in the form of a dividend. DT Midstream has raised its dividend for 2 consecutive years. Natural Resource Partners is clearly the better dividend stock, given its higher yield and lower payout ratio.

Volatility & Risk

DT Midstream has a beta of 0.72, suggesting that its share price is 28% less volatile than the S&P 500. Comparatively, Natural Resource Partners has a beta of 0.15, suggesting that its share price is 85% less volatile than the S&P 500.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DT Midstream	$1.24 billion	10.43	$441.00 million	$4.57	27.81
Natural Resource Partners	$199.97 million	7.01	$136.37 million	$7.84	13.49

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

Insider and Institutional Ownership

81.5% of DT Midstream shares are held by institutional investors. Comparatively, 31.8% of Natural Resource Partners shares are held by institutional investors. 0.5% of DT Midstream shares are held by insiders. Comparatively, 35.3% of Natural Resource Partners shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

DT Midstream beats Natural Resource Partners on 10 of the 17 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 Natural Resource Partners

Natural Resource Partners L.P., together with its subsidiaries, owns, manages, and leases a portfolio of mineral properties in the United States. It operates in two segments, Mineral Rights and Soda Ash. The company owns interests in coal, soda ash, trona, and other natural resources. Its coal reserves are primarily located in the Appalachia Basin, the Illinois Basin, and the Northern Powder River Basin in the United States; industrial minerals and aggregates properties located in the United States; and oil and gas properties located in Louisiana. The company leases a portion of its reserves in exchange for royalty payments; and owns and leases transportation and processing infrastructure related to coal properties. NRP (GP) LP serves as the general partner of the company. Natural Resource Partners L.P. was incorporated in 2002 and is headquartered in Houston, Texas.