Head to Head Comparison: Universal Energy (OTCMKTS:UVSE) & ARC Resources (OTCMKTS:AETUF)

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

Analyst Recommendations

This is a summary of recent ratings and price targets for Universal Energy and ARC Resources, as provided by MarketBeat.

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

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

Valuation & Earnings

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

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

ARC Resources has higher revenue and earnings than Universal Energy.

Insider and Institutional Ownership

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

Risk & Volatility

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

Profitability

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

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

Summary

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

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.

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.