Universal Energy (OTCMKTS:UVSE) and Northern Oil and Gas (NYSE:NOG) Critical Analysis

Northern Oil and Gas (NYSE:NOG) and Universal Energy (OTCMKTS:UVSE) are both energy companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, risk, profitability, earnings, analyst recommendations, institutional ownership and valuation.

Earnings and Valuation

This table compares Northern Oil and Gas and Universal Energy”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Northern Oil and Gas	$2.48 billion	1.11	$38.76 million	$0.33	85.66
Universal Energy	N/A	N/A	N/A	N/A	N/A

Northern Oil and Gas has higher revenue and earnings than Universal Energy.

Risk and Volatility

Northern Oil and Gas has a beta of 0.94, suggesting that its share price is 6% less volatile than the S&P 500. Comparatively, Universal Energy has a beta of 0.36, suggesting that its share price is 64% less volatile than the S&P 500.

Insider & Institutional Ownership

98.8% of Northern Oil and Gas shares are held by institutional investors. 2.9% of Northern Oil and Gas shares are held by company insiders. Comparatively, 0.2% of Universal Energy shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings and price targets for Northern Oil and Gas and Universal Energy, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Northern Oil and Gas	1	4	3	1	2.44
Universal Energy	0	0	0	0	0.00

Northern Oil and Gas presently has a consensus target price of $31.71, suggesting a potential upside of 12.19%. Given Northern Oil and Gas’ stronger consensus rating and higher possible upside, equities research analysts clearly believe Northern Oil and Gas is more favorable than Universal Energy.

Profitability

This table compares Northern Oil and Gas and Universal Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Northern Oil and Gas	1.57%	19.74%	8.14%
Universal Energy	N/A	N/A	N/A

Summary

Northern Oil and Gas beats Universal Energy on 11 of the 11 factors compared between the two stocks.

About Northern Oil and Gas

Northern Oil and Gas, Inc., an independent energy company, engages in the acquisition, exploration, exploitation, development, and production of crude oil and natural gas properties in the United States. It primarily holds interests in the Williston Basin, the Appalachian Basin, and the Permian Basin in the United States. The company is based in Minnetonka, Minnesota.

About Universal Energy

Universal Energy Corp., an independent energy company, engages in the acquisition, exploration, development, and production of crude oil and natural gas in the United States and Canada. It has 13 oil and gas lease projects. The company was founded in 2002 and is based in Lake Mary, Florida.