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

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

Institutional & Insider Ownership

98.8% of Northern Oil and Gas shares are owned by institutional investors. 2.9% of Northern Oil and Gas 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 large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings 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, indicating a potential upside of 16.95%. Given Northern Oil and Gas’ stronger consensus rating and higher probable upside, equities research analysts plainly believe Northern Oil and Gas is more favorable than Universal Energy.

Earnings & 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	1.07	$38.76 million	$0.33	82.17
Universal Energy	N/A	N/A	N/A	N/A	N/A

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

Volatility and Risk

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

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.