Critical Contrast: Accel Entertainment (ACEL) versus Its Competitors

Accel Entertainment (NYSE:ACEL – Get Rating) is one of 33 public companies in the “Amusement & recreation services” industry, but how does it contrast to its rivals? We will compare Accel Entertainment to similar businesses based on the strength of its dividends, institutional ownership, analyst recommendations, risk, profitability, earnings and valuation.

Earnings & Valuation

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Accel Entertainment	$734.71 million	$31.56 million	22.25
Accel Entertainment Competitors	$996.05 million	-$74.95 million	49.79

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

Profitability

This table compares Accel Entertainment and its rivals’ 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	-2,737.81%	-1.13%	-206.04%

Risk & Volatility

Accel Entertainment has a beta of 1.06, suggesting that its stock price is 6% more volatile than the S&P 500. Comparatively, Accel Entertainment’s rivals have a beta of -0.33, suggesting that their average stock price is 133% less volatile than the S&P 500.

Institutional & Insider Ownership

48.3% of Accel Entertainment shares are held by institutional investors. Comparatively, 34.7% of shares of all “Amusement & recreation services” companies are held by institutional investors. 18.8% of Accel Entertainment shares are held by insiders. Comparatively, 25.2% of shares of all “Amusement & recreation services” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Accel Entertainment and its rivals, as reported 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	274	384	10	2.45

Accel Entertainment presently has a consensus target price of $16.38, indicating a potential upside of 54.05%. As a group, “Amusement & recreation services” companies have a potential upside of 54.60%. Given Accel Entertainment’s rivals higher probable upside, analysts plainly believe Accel Entertainment has less favorable growth aspects than its rivals.

Summary

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

About Accel Entertainment (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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