Accel Entertainment (NYSE:ACEL) versus Rush Street Interactive (NYSE:RSI) Financial Contrast

Accel Entertainment (NYSE:ACEL) and Rush Street Interactive (NYSE:RSI) are both consumer discretionary companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, earnings, institutional ownership, profitability, dividends, risk and analyst recommendations.

Profitability

This table compares Accel Entertainment and Rush Street Interactive’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Accel Entertainment	4.49%	22.62%	5.82%
Rush Street Interactive	2.56%	24.46%	10.94%

Earnings & Valuation

This table compares Accel Entertainment and Rush Street Interactive”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Accel Entertainment	$1.33 billion	0.84	$51.47 million	$0.76	18.22
Rush Street Interactive	$1.13 billion	2.40	$33.31 million	$0.33	35.77

Accel Entertainment has higher revenue and earnings than Rush Street Interactive. Accel Entertainment is trading at a lower price-to-earnings ratio than Rush Street Interactive, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Accel Entertainment and Rush Street Interactive, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Accel Entertainment	0	3	3	0	2.50
Rush Street Interactive	0	5	10	1	2.75

Accel Entertainment presently has a consensus price target of $14.25, indicating a potential upside of 2.92%. Rush Street Interactive has a consensus price target of $26.46, indicating a potential upside of 124.16%. Given Rush Street Interactive’s stronger consensus rating and higher probable upside, analysts plainly believe Rush Street Interactive is more favorable than Accel Entertainment.

Volatility and Risk

Accel Entertainment has a beta of 1.09, indicating that its share price is 9% more volatile than the S&P 500. Comparatively, Rush Street Interactive has a beta of 1.8, indicating that its share price is 80% more volatile than the S&P 500.

Insider and Institutional Ownership

55.4% of Accel Entertainment shares are owned by institutional investors. Comparatively, 24.8% of Rush Street Interactive shares are owned by institutional investors. 14.5% of Accel Entertainment shares are owned by company insiders. Comparatively, 52.9% of Rush Street Interactive shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Rush Street Interactive beats Accel Entertainment on 10 of the 15 factors compared between the two stocks.

About Accel Entertainment

Accel Entertainment, Inc. is a distributed gaming operator that supplies and manages video gaming terminals and related equipment at licensed locations. Its gaming machines are typically placed in bars, restaurants and other local businesses that share in the revenue generated by play. The company provides services such as installing, maintaining and monitoring its equipment, along with support for the regulatory requirements involved in operating gaming terminals. Accel’s business model gives local venues access to gaming without requiring them to manage the machines themselves.

About Rush Street Interactive

Rush Street Interactive, Inc. is an online gaming company that offers real-money online casino games and sports betting. Its consumer-facing brands include BetRivers and, in some markets, PlaySugarHouse. The company also offers free-to-play gaming products. Rush Street Interactive was established in 2012 as part of the Rush Street Gaming group and became a publicly traded company in 2020. It operates in regulated markets in the United States, Canada and Latin America, with the availability of its products varying by jurisdiction.