Analyzing Accel Entertainment (ACEL) and Its Competitors

Accel Entertainment (NYSE:ACEL – Get Rating) is one of 34 public companies in the “Amusement & recreation services” industry, but how does it contrast to its competitors? We will compare Accel Entertainment to similar businesses based on the strength of its profitability, institutional ownership, analyst recommendations, dividends, earnings, valuation and risk.

Profitability

This table compares Accel Entertainment and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Accel Entertainment	5.84%	48.62%	12.77%
Accel Entertainment Competitors	-2,733.84%	-2.38%	-207.36%

Analyst Recommendations

This is a summary of recent ratings for Accel Entertainment and its competitors, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Accel Entertainment	0	1	3	0	2.75
Accel Entertainment Competitors	73	271	380	10	2.45

Accel Entertainment currently has a consensus price target of $16.38, indicating a potential upside of 58.37%. As a group, “Amusement & recreation services” companies have a potential upside of 67.12%. Given Accel Entertainment’s competitors higher possible upside, analysts plainly believe Accel Entertainment has less favorable growth aspects than its competitors.

Volatility and Risk

Accel Entertainment has a beta of 1.06, indicating that its stock price is 6% more volatile than the S&P 500. Comparatively, Accel Entertainment’s competitors have a beta of -0.49, indicating that their average stock price is 149% less volatile than the S&P 500.

Insider and Institutional Ownership

48.3% of Accel Entertainment shares are held by institutional investors. Comparatively, 34.0% of shares of all “Amusement & recreation services” companies are held by institutional investors. 18.8% of Accel Entertainment shares are held by insiders. Comparatively, 29.4% of shares of all “Amusement & recreation services” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Accel Entertainment and its competitors gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Accel Entertainment	$734.71 million	$31.56 million	21.65
Accel Entertainment Competitors	$914.79 million	-$75.39 million	64.85

Accel Entertainment’s competitors have higher revenue, but lower earnings than Accel Entertainment. Accel Entertainment is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Summary

Accel Entertainment beats its competitors on 8 of the 13 factors compared.

Accel Entertainment Company Profile (Get Rating)

Accel Entertainment, Inc., together with its subsidiaries, operates as a distributed gaming operator in the United States. It is involved in the installation, maintenance, and operation of gaming terminals; redemption devices that disburse winnings and contain automated teller machine (ATM) functionality; and other amusement devices in authorized non-casino locations, such as restaurants, bars, taverns, convenience stores, liquor stores, truck stops, and grocery stores. The company also provides licensed establishment partners gaming solutions that appeal to players who patronize those businesses. In addition, it operates stand-alone ATMs in gaming and non-gaming locations, as well as amusement devices, including jukeboxes, dartboards, pool tables, pinball machines, and other related entertainment equipment. As of December 31, 2021, the company operated 13,639 video gaming terminals across 2,584 locations in Illinois. Accel Entertainment, Inc. is headquartered in Burr Ridge, Illinois.

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