Universal Energy (OTCMKTS:UVSE) versus APA (NASDAQ:APA) Critical Analysis

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

Earnings & Valuation

This table compares Universal Energy and APA”s gross 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
APA	$8.92 billion	1.53	$1.43 billion	$3.99	9.68

APA has higher revenue and earnings than Universal Energy.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Universal Energy	0	0	0	0	0.00
APA	4	20	7	0	2.10

APA has a consensus target price of $37.23, indicating a potential downside of 3.62%. Given Universal Energy’s higher probable upside, research analysts clearly believe Universal Energy is more favorable than APA.

Insider and Institutional Ownership

83.0% of APA shares are held by institutional investors. 0.2% of Universal Energy shares are held by company insiders. Comparatively, 0.7% of APA shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Universal Energy and APA’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
APA	15.55%	19.89%	7.51%

Volatility and Risk

Universal Energy has a beta of 0.36, suggesting that its stock price is 64% less volatile than the S&P 500. Comparatively, APA has a beta of 0.49, suggesting that its stock price is 51% less volatile than the S&P 500.

Summary

APA beats Universal Energy on 9 of the 10 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 APA

APA Corporation, an independent energy company, explores for, develops, and produces natural gas, crude oil, and natural gas liquids. It has oil and gas operations in the United States, Egypt, and North Sea. The company also has exploration and appraisal activities in Suriname, as well as holds interests in projects located in Uruguay and internationally. APA Corporation was incorporated in 1954 and is headquartered in Houston, Texas.