Accel Entertainment (NYSE:ACEL – Get Free Report) and PENN Entertainment (NASDAQ:PENN – Get Free Report) are both consumer discretionary companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, risk, earnings, analyst recommendations, valuation, dividends and institutional ownership.
Insider and Institutional Ownership
55.4% of Accel Entertainment shares are owned by institutional investors. Comparatively, 91.7% of PENN Entertainment shares are owned by institutional investors. 14.5% of Accel Entertainment shares are owned by company insiders. Comparatively, 3.2% of PENN Entertainment shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Analyst Ratings
This is a summary of current recommendations and price targets for Accel Entertainment and PENN Entertainment, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Accel Entertainment | 0 | 3 | 4 | 0 | 2.57 |
| PENN Entertainment | 1 | 7 | 12 | 0 | 2.55 |
Profitability
This table compares Accel Entertainment and PENN Entertainment’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Accel Entertainment | 4.08% | 22.30% | 5.59% |
| PENN Entertainment | -12.66% | 2.93% | 0.39% |
Earnings and Valuation
This table compares Accel Entertainment and PENN Entertainment”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Accel Entertainment | $1.39 billion | 0.64 | $51.47 million | $0.67 | 16.46 |
| PENN Entertainment | $7.16 billion | 0.29 | -$843.10 million | ($6.36) | -2.44 |
Accel Entertainment has higher earnings, but lower revenue than PENN Entertainment. PENN Entertainment is trading at a lower price-to-earnings ratio than Accel Entertainment, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Accel Entertainment has a beta of 1.01, meaning that its share price is 1% more volatile than the S&P 500. Comparatively, PENN Entertainment has a beta of 1.38, meaning that its share price is 38% more volatile than the S&P 500.
Summary
Accel Entertainment beats PENN Entertainment on 9 of the 14 factors compared between the two stocks.
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.
About PENN Entertainment
PENN Entertainment, Inc., together with its subsidiaries, provides integrated entertainment, sports content, and casino gaming experiences. The company operates through five segments: Northeast, South, West, Midwest, and Interactive. It operates online sports betting in various jurisdictions; and iCasino under Hollywood Casino, L'Auberge, ESPN BET, and theScore Bet Sportsbook and Casino brands. The company's portfolio also includes PENN Play, customer loyalty program, which offers a set of rewards and experiences for business channels. In addition, it owns various trademarks and service marks, including Ameristar, Argosy, Boomtown, Hollywood Casino, Hollywood Gaming, L'Auberge, PENN Play, theScore, theScore Bet, theScore esports, and M Resort. The company was formerly known as Penn National Gaming, Inc. and changed its name to PENN Entertainment, Inc. in August 2022. PENN Entertainment, Inc. was founded in 1972 and is based in Wyomissing, Pennsylvania.
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