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

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

Dividends

Kinetik pays an annual dividend of $3.24 per share and has a dividend yield of 6.7%. DHT pays an annual dividend of $4.88 per share and has a dividend yield of 23.6%. 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. 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 has raised its dividend for 1 consecutive years.

Risk and Volatility

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

Valuation and Earnings

This table compares Kinetik and DHT”s gross revenue, earnings per share and valuation.

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

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.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Kinetik and DHT, as reported by MarketBeat.

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

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

Profitability

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

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

Institutional and Insider Ownership

21.1% of Kinetik shares are held by institutional investors. Comparatively, 58.5% of DHT shares are held by institutional investors. 3.6% of Kinetik shares are held by company insiders. Comparatively, 1.6% of DHT shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

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

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.

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.