Reviewing DHT (NYSE:DHT) & Kinetik (NYSE:KNTK)

DHT (NYSE:DHT) and Kinetik (NYSE:KNTK) are both mid-cap energy companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, dividends, analyst recommendations, valuation, profitability, risk and institutional ownership.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for DHT and Kinetik, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DHT	0	2	1	1	2.75
Kinetik	0	7	11	1	2.68

DHT presently has a consensus target price of $27.00, suggesting a potential upside of 30.45%. Kinetik has a consensus target price of $56.43, suggesting a potential upside of 16.06%. Given DHT’s stronger consensus rating and higher probable upside, analysts plainly believe DHT is more favorable than Kinetik.

Valuation and Earnings

This table compares DHT and Kinetik”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DHT	$498.40 million	6.69	$211.09 million	$2.94	7.04
Kinetik	$1.76 billion	4.47	$525.93 million	$2.99	16.26

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

Volatility and Risk

DHT has a beta of -0.03, meaning that its share price is 103% less volatile than the S&P 500. Comparatively, Kinetik has a beta of 0.67, meaning that its share price is 33% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
DHT	65.52%	39.40%	28.63%
Kinetik	25.65%	-44.80%	7.16%

Insider & Institutional Ownership

58.5% of DHT shares are owned by institutional investors. Comparatively, 21.1% of Kinetik shares are owned by institutional investors. 1.6% of DHT shares are owned by company insiders. Comparatively, 3.6% of Kinetik shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Dividends

DHT pays an annual dividend of $4.88 per share and has a dividend yield of 23.6%. Kinetik pays an annual dividend of $3.24 per share and has a dividend yield of 6.7%. DHT pays out 166.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Kinetik pays out 108.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Kinetik has raised its dividend for 1 consecutive years.

Summary

Kinetik beats DHT on 9 of the 17 factors compared between the two stocks.

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.

About Kinetik

Kinetik Holdings Inc. operates as a midstream company in the Texas Delaware Basin. It provides gathering, transportation, compression, processing, and treating services for companies that produce natural gas, natural gas liquids, crude oil, and water. The company is headquartered in Midland, Texas.