Melco International Development (OTCMKTS:MDEVF – 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, valuation, dividends, risk, profitability, earnings and institutional ownership.
Risk & Volatility
Melco International Development has a beta of 0.12, meaning that its share price is 88% less volatile than the S&P 500. Comparatively, Accel Entertainment has a beta of 1.32, meaning that its share price is 32% more volatile than the S&P 500.
Insider & Institutional Ownership
55.4% of Accel Entertainment shares are held by institutional investors. 18.3% of Accel Entertainment shares are held by company 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 Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Melco International Development | 0 | 0 | 0 | 0 | 0.00 |
| Accel Entertainment | 0 | 0 | 2 | 0 | 3.00 |
Accel Entertainment has a consensus price target of $15.50, indicating a potential upside of 33.68%. Given Accel Entertainment’s stronger consensus rating and higher probable upside, analysts plainly believe Accel Entertainment is more favorable than Melco International Development.
Earnings and Valuation
This table compares Melco International Development and Accel Entertainment”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Melco International Development | $4.64 billion | 0.19 | -$100.59 million | N/A | N/A |
| Accel Entertainment | $1.23 billion | 0.79 | $35.25 million | $0.40 | 28.99 |
Accel Entertainment has lower revenue, but higher earnings than Melco International Development.
Profitability
This table compares Melco International Development and Accel Entertainment’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Melco International Development | N/A | N/A | N/A |
| Accel Entertainment | 2.75% | 28.46% | 6.81% |
Summary
Accel Entertainment beats Melco International Development on 11 of the 12 factors compared between the two stocks.
About Melco International Development
Melco International Development Limited, an investment holding company, engages in the leisure and entertainment business in Macau, the Philippines, Cyprus, and Japan. It operates in two segments: Casino and Hospitality, and Others. The company develops, owns, and operates a network of casino gaming and entertainment casino resorts. It also involved in the development and operation of integrated casino and entertainment resort, and related activities; and operation of satellite casinos. In addition, the company provides financing, management, and property investment services. Further, it operates electronic gaming machines. The company was formerly known as The Macao Electric Lighting Company, Limited and changed its name to Melco International Development Limited in 1988. Melco International Development Limited was incorporated in 1910 and is headquartered in Central, Hong Kong.
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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