Critical Review: Las Vegas Sands (NYSE:LVS) & Accel Entertainment (NYSE:ACEL)

Las Vegas Sands (NYSE:LVSGet Free Report) and Accel Entertainment (NYSE:ACELGet Free Report) are both consumer discretionary companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, profitability, analyst recommendations, valuation, earnings, risk and dividends.

Institutional and Insider Ownership

39.2% of Las Vegas Sands shares are owned by institutional investors. Comparatively, 55.4% of Accel Entertainment shares are owned by institutional investors. 1.2% of Las Vegas Sands shares are owned by insiders. Comparatively, 18.3% of Accel Entertainment shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Las Vegas Sands and Accel Entertainment’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Las Vegas Sands 12.16% 55.37% 7.89%
Accel Entertainment 2.75% 28.46% 6.81%

Valuation & Earnings

This table compares Las Vegas Sands and Accel Entertainment”s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Las Vegas Sands $11.30 billion 3.34 $1.45 billion $1.98 27.78
Accel Entertainment $1.23 billion 0.79 $35.25 million $0.40 29.00

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

Analyst Recommendations

This is a summary of current ratings and price targets for Las Vegas Sands and Accel Entertainment, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Las Vegas Sands 0 5 10 1 2.75
Accel Entertainment 0 0 2 0 3.00

Las Vegas Sands currently has a consensus price target of $58.3333, indicating a potential upside of 6.06%. Accel Entertainment has a consensus price target of $15.50, indicating a potential upside of 33.63%. Given Accel Entertainment’s stronger consensus rating and higher possible upside, analysts clearly believe Accel Entertainment is more favorable than Las Vegas Sands.

Risk and Volatility

Las Vegas Sands has a beta of 1.08, suggesting that its stock price is 8% more volatile than the S&P 500. Comparatively, Accel Entertainment has a beta of 1.32, suggesting that its stock price is 32% more volatile than the S&P 500.

Summary

Las Vegas Sands beats Accel Entertainment on 9 of the 15 factors compared between the two stocks.

About Las Vegas Sands

(Get Free Report)

Las Vegas Sands Corp., together with its subsidiaries, develops, owns, and operates integrated resorts in Macao and Singapore. It owns and operates The Venetian Macao Resort Hotel, the Londoner Macao, The Parisian Macao, The Plaza Macao and Four Seasons Hotel Macao, Cotai Strip, and the Sands Macao in Macao, the People’s Republic of China; and Marina Bay Sands in Singapore. The company’s integrated resorts feature accommodations, gaming, entertainment and retail malls, convention and exhibition facilities, celebrity chef restaurants, and other amenities. Las Vegas Sands Corp. was founded in 1988 and is based in Las Vegas, Nevada.

About Accel Entertainment

(Get Free Report)

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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