Motorsport Games (NASDAQ:MSGM – Get Free Report) and Accel Entertainment (NYSE:ACEL – Get Free Report) are both small-cap consumer discretionary companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, dividends, valuation, risk, profitability and institutional ownership.
Analyst Recommendations
This is a summary of recent ratings and target prices for Motorsport Games and Accel Entertainment, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Motorsport Games | 0 | 1 | 0 | 0 | 2.00 |
| Accel Entertainment | 0 | 3 | 4 | 0 | 2.57 |
Accel Entertainment has a consensus target price of $14.00, suggesting a potential upside of 21.79%. Given Accel Entertainment’s stronger consensus rating and higher possible upside, analysts plainly believe Accel Entertainment is more favorable than Motorsport Games.
Risk and Volatility
Earnings and Valuation
This table compares Motorsport Games and Accel Entertainment”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Motorsport Games | $8.69 million | 2.34 | -$2.75 million | $0.40 | 8.80 |
| Accel Entertainment | $1.23 billion | 0.78 | $35.25 million | $0.50 | 22.99 |
Accel Entertainment has higher revenue and earnings than Motorsport Games. Motorsport Games is trading at a lower price-to-earnings ratio than Accel Entertainment, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Motorsport Games and Accel Entertainment’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Motorsport Games | 34.24% | 86.01% | 42.20% |
| Accel Entertainment | 3.34% | 27.51% | 6.76% |
Institutional and Insider Ownership
1.7% of Motorsport Games shares are held by institutional investors. Comparatively, 55.4% of Accel Entertainment shares are held by institutional investors. 17.3% of Motorsport Games shares are held by company insiders. Comparatively, 18.3% of Accel Entertainment shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Summary
Accel Entertainment beats Motorsport Games on 9 of the 14 factors compared between the two stocks.
About Motorsport Games
Motorsport Games Inc. develops and publishes multi-platform racing video games in the United States. It operates through Gaming and Esports segments. The company offers rFactor 2, a realistic racing simulation game; NASCAR Heat Mobile, a racing experience for mobile devices; NASCAR Heat 3, NASCAR Heat 4, NASCAR Heat 5, NASCAR Heat Ultimate Edition, and NASCAR 21: Ignition, which are racing video games; KartKraft, a kart racing simulator; NASCAR Rivals, a racing video game; and Le Mans Ultimate, a official game of the FIA World Endurance Championship and 24 Hours of Le Mans. It also organizes and facilitates esports tournaments, competitions, and events for its licensed racing games, as well as on behalf of third-party racing game developers and publishers. The company offers its products for game consoles, personal computer, and mobile platforms through various retail and digital channels, including full-game and downloadable content. The company was founded in 2018 and is headquartered in Miami, Florida. Motorsport Games Inc. operates as a subsidiary of Motorsport Network LLC.
About Accel Entertainment
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 gaming solutions to the location partners. In addition, it operates stand-alone ATMs in gaming and non-gaming locations, as well as amusement devices, including jukeboxes, dartboards, pool tables, and other related entertainment equipment. The company is headquartered in Burr Ridge, Illinois.
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