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

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

Risk and Volatility

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

Analyst Ratings

This is a summary of current ratings and target prices for Natural Resource Partners and DT Midstream, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Natural Resource Partners	0	1	0	0	2.00
DT Midstream	1	5	9	0	2.53

DT Midstream has a consensus price target of $153.43, indicating a potential upside of 16.49%. Given DT Midstream’s stronger consensus rating and higher probable upside, analysts plainly believe DT Midstream is more favorable than Natural Resource Partners.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Natural Resource Partners	$207.28 million	7.10	$136.37 million	$7.84	14.17
DT Midstream	$1.24 billion	10.81	$441.00 million	$4.57	28.82

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.

Dividends

Natural Resource Partners pays an annual dividend of $3.00 per share and has a dividend yield of 2.7%. DT Midstream pays an annual dividend of $3.52 per share and has a dividend yield of 2.7%. Natural Resource Partners pays out 38.3% of its earnings in the form of a dividend. 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. DT Midstream has increased its dividend for 2 consecutive years. Natural Resource Partners is clearly the better dividend stock, given its higher yield and lower payout ratio.

Insider & Institutional Ownership

31.8% of Natural Resource Partners shares are owned by institutional investors. Comparatively, 81.5% of DT Midstream shares are owned by institutional investors. 35.3% of Natural Resource Partners shares are owned by insiders. Comparatively, 0.5% of DT Midstream shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Natural Resource Partners and DT Midstream’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Natural Resource Partners	57.13%	16.65%	13.88%
DT Midstream	35.72%	9.58%	4.62%

Summary

DT Midstream beats Natural Resource Partners on 10 of the 17 factors compared between the two stocks.

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.

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.