Diamondback Energy (NASDAQ:FANG) & Universal Energy (OTCMKTS:UVSE) Financial Review

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

Volatility and Risk

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

Insider & Institutional Ownership

90.0% of Diamondback Energy shares are held by institutional investors. 0.2% of Universal Energy shares are held by insiders. Comparatively, 0.7% of Diamondback Energy shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Universal Energy and Diamondback Energy”s revenue, earnings per share 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
Diamondback Energy	$12.84 billion	3.21	$3.14 billion	$16.35	8.63

Diamondback Energy has higher revenue and earnings than Universal Energy.

Analyst Recommendations

This is a summary of current ratings for Universal Energy and Diamondback Energy, as reported by MarketBeat.

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

Diamondback Energy has a consensus price target of $194.09, suggesting a potential upside of 37.52%. Given Diamondback Energy’s stronger consensus rating and higher probable upside, analysts clearly believe Diamondback Energy is more favorable than Universal Energy.

Profitability

This table compares Universal Energy and Diamondback Energy’s 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
Diamondback Energy	33.64%	13.68%	7.93%

Summary

Diamondback Energy 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 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.