Analyzing Universal Energy (OTCMKTS:UVSE) & ARC Resources (OTCMKTS:AETUF)

ARC Resources (OTCMKTS:AETUF) and Universal Energy (OTCMKTS:UVSE) are both oils/energy companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, risk, earnings, institutional ownership, profitability, dividends and analyst recommendations.

Risk and Volatility

ARC Resources has a beta of 1.14, suggesting that its stock price is 14% more volatile than the S&P 500. Comparatively, Universal Energy has a beta of 0.18, suggesting that its stock price is 82% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for ARC Resources and Universal Energy, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ARC Resources	0	0	1	2	3.67
Universal Energy	0	0	0	0	0.00

ARC Resources currently has a consensus target price of $25.00, indicating a potential upside of 30.88%. Given ARC Resources’ stronger consensus rating and higher possible upside, equities research analysts clearly believe ARC Resources is more favorable than Universal Energy.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
ARC Resources	26.33%	16.60%	10.02%
Universal Energy	N/A	N/A	N/A

Earnings and Valuation

This table compares ARC Resources and Universal Energy”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ARC Resources	$4.19 billion	2.70	$1.18 billion	$1.54	12.40
Universal Energy	N/A	N/A	N/A	N/A	N/A

ARC Resources has higher revenue and earnings than Universal Energy.

Institutional and Insider Ownership

2.5% of ARC Resources shares are owned by institutional investors. 0.3% of ARC Resources shares are owned by company insiders. Comparatively, 0.2% of Universal Energy shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

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

About ARC Resources

ARC Resources Ltd. engages in the acquiring and developing crude oil, natural gas, condensate, and natural gas liquids in Canada. It primarily holds interests in the Montney basin located in Alberta and northeast British Columbia. ARC Resources Ltd. was founded in 1996 and is based in Calgary, Canada.

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.