Contrasting SM Energy (NYSE:SM) and Universal Energy (OTCMKTS:UVSE)

SM Energy (NYSE:SM) 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 earnings, institutional ownership, profitability, analyst recommendations, risk, valuation and dividends.

Insider and Institutional Ownership

91.3% of SM Energy shares are owned by institutional investors. 1.4% of SM Energy 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 endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Valuation and Earnings

This table compares SM Energy and Universal Energy’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SM Energy	$3.36 billion	1.42	$1.11 billion	$8.83	4.56
Universal Energy	N/A	N/A	N/A	N/A	N/A

SM Energy has higher revenue and earnings than Universal Energy.

Analyst Ratings

This is a summary of current recommendations for SM Energy and Universal Energy, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SM Energy	1	5	5	0	2.36
Universal Energy	0	0	0	0	N/A

SM Energy currently has a consensus target price of $41.10, indicating a potential upside of 2.09%.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
SM Energy	41.36%	22.48%	12.07%
Universal Energy	N/A	N/A	N/A

Risk and Volatility

SM Energy has a beta of 4.36, indicating that its stock price is 336% more volatile than the S&P 500. Comparatively, Universal Energy has a beta of 0.19, indicating that its stock price is 81% less volatile than the S&P 500.

Summary

SM Energy beats Universal Energy on 8 of the 8 factors compared between the two stocks.

About SM Energy

SM Energy Company, an independent energy company, engages in the acquisition, exploration, development, and production of oil, gas, and natural gas liquids in the state of Texas. It also has working interests in oil and gas producing wells in the Midland Basin and South Texas. The company was formerly known as St. Mary Land & Exploration Company and changed its name to SM Energy Company in May 2010. SM Energy Company was founded in 1908 and is headquartered in Denver, Colorado.

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.