Head to Head Review: Universal Energy (OTCMKTS:UVSE) vs. Diamondback Energy (NASDAQ:FANG)

Diamondback Energy (NASDAQ:FANG) and Universal Energy (OTCMKTS:UVSE) are both energy companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, earnings, analyst recommendations, risk, dividends, institutional ownership and profitability.

Analyst Ratings

This is a summary of current ratings and price targets for Diamondback Energy and Universal Energy, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Diamondback Energy	0	1	19	2	3.05
Universal Energy	0	0	0	0	0.00

Diamondback Energy currently has a consensus price target of $194.09, suggesting a potential upside of 36.73%. Given Diamondback Energy’s stronger consensus rating and higher probable upside, analysts plainly believe Diamondback Energy is more favorable than Universal Energy.

Earnings & Valuation

This table compares Diamondback Energy and Universal Energy”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Diamondback Energy	$12.84 billion	3.23	$3.14 billion	$16.35	8.68
Universal Energy	N/A	N/A	N/A	N/A	N/A

Diamondback Energy has higher revenue and earnings than Universal Energy.

Volatility and Risk

Diamondback Energy has a beta of 1.06, indicating that its stock price is 6% more volatile than the S&P 500. Comparatively, Universal Energy has a beta of 0.18, indicating that its stock price is 82% less volatile than the S&P 500.

Institutional and Insider Ownership

90.0% of Diamondback Energy shares are held by institutional investors. 0.7% of Diamondback Energy 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 large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Diamondback Energy	33.64%	13.68%	7.93%
Universal Energy	N/A	N/A	N/A

Summary

Diamondback Energy beats Universal Energy on 11 of the 11 factors compared between the two stocks.

About Diamondback Energy

Diamondback Energy, Inc., an independent oil and natural gas company, acquires, develops, explores, and exploits unconventional, onshore oil and natural gas reserves in the Permian Basin in West Texas. It focuses on the development of the Spraberry and Wolfcamp formations of the Midland basin; and the Wolfcamp and Bone Spring formations of the Delaware basin, which are part of the Permian Basin in West Texas and New Mexico. The company also owns and operates midstream infrastructure assets, in the Midland and Delaware Basins of the Permian Basin. Diamondback Energy, Inc. was founded in 2007 and is headquartered in Midland, Texas.

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.