Occidental Petroleum (NYSE:OXY) vs. DT Midstream (NYSE:DTM) Head-To-Head Analysis

DT Midstream (NYSE:DTM) and Occidental Petroleum (NYSE:OXY) are both large-cap energy companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, institutional ownership, risk, dividends, earnings, profitability and analyst recommendations.

Institutional and Insider Ownership

81.5% of DT Midstream shares are owned by institutional investors. Comparatively, 88.7% of Occidental Petroleum shares are owned by institutional investors. 0.3% of DT Midstream shares are owned by insiders. Comparatively, 0.3% of Occidental Petroleum 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.

Risk and Volatility

DT Midstream has a beta of 0.75, indicating that its share price is 25% less volatile than the S&P 500. Comparatively, Occidental Petroleum has a beta of 0.23, indicating that its share price is 77% less volatile than the S&P 500.

Dividends

DT Midstream pays an annual dividend of $3.52 per share and has a dividend yield of 2.6%. Occidental Petroleum pays an annual dividend of $1.04 per share and has a dividend yield of 1.7%. DT Midstream pays out 81.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Occidental Petroleum pays out 64.6% of its earnings in the form of a dividend. DT Midstream has raised its dividend for 2 consecutive years and Occidental Petroleum has raised its dividend for 5 consecutive years.

Analyst Recommendations

This is a summary of recent recommendations for DT Midstream and Occidental Petroleum, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DT Midstream	1	5	6	0	2.42
Occidental Petroleum	2	15	8	1	2.31

DT Midstream presently has a consensus price target of $144.10, indicating a potential upside of 7.47%. Occidental Petroleum has a consensus price target of $58.83, indicating a potential downside of 6.54%. Given DT Midstream’s stronger consensus rating and higher possible upside, equities analysts clearly believe DT Midstream is more favorable than Occidental Petroleum.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
DT Midstream	35.48%	9.13%	4.41%
Occidental Petroleum	9.14%	9.89%	3.27%

Valuation and Earnings

This table compares DT Midstream and Occidental Petroleum”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	$1.24 billion	11.00	$441.00 million	$4.31	31.11
Occidental Petroleum	$22.08 billion	2.83	$2.33 billion	$1.61	39.09

Occidental Petroleum has higher revenue and earnings than DT Midstream. DT Midstream is trading at a lower price-to-earnings ratio than Occidental Petroleum, indicating that it is currently the more affordable of 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 Occidental Petroleum

Occidental Petroleum Corporation, together with its subsidiaries, engages in the acquisition, exploration, and development of oil and gas properties in the United States, the Middle East, and North Africa. It operates through three segments: Oil and Gas, Chemical, and Midstream and Marketing. The company's Oil and Gas segment explores for, develops, and produces oil and condensate, natural gas liquids (NGLs), and natural gas. Its Chemical segment manufactures and markets basic chemicals, including chlorine, caustic soda, chlorinated organics, potassium chemicals, ethylene dichloride, chlorinated isocyanurates, sodium silicates, and calcium chloride; and vinyls comprising vinyl chloride monomer, polyvinyl chloride, and ethylene. The Midstream and Marketing segment gathers, processes, transports, stores, purchases, and markets oil, condensate, NGLs, natural gas, carbon dioxide, and power. This segment also invests in entities. Occidental Petroleum Corporation was founded in 1920 and is headquartered in Houston, Texas.