Rush Street Interactive (NYSE:RSI) & Accel Entertainment (NYSE:ACEL) Head to Head Review

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

Risk & Volatility

Rush Street Interactive has a beta of 1.9, meaning that its stock price is 90% more volatile than the S&P 500. Comparatively, Accel Entertainment has a beta of 1.12, meaning that its stock price is 12% more volatile than the S&P 500.

Institutional and Insider Ownership

24.8% of Rush Street Interactive shares are held by institutional investors. Comparatively, 55.4% of Accel Entertainment shares are held by institutional investors. 56.9% of Rush Street Interactive 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 stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Rush Street Interactive	2.48%	16.53%	8.25%
Accel Entertainment	2.75%	28.46%	6.81%

Analyst Recommendations

This is a summary of current ratings for Rush Street Interactive and Accel Entertainment, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rush Street Interactive	0	2	8	1	2.91
Accel Entertainment	0	1	2	0	2.67

Rush Street Interactive presently has a consensus price target of $18.33, indicating a potential downside of 15.42%. Accel Entertainment has a consensus price target of $15.50, indicating a potential upside of 36.50%. Given Accel Entertainment’s higher possible upside, analysts clearly believe Accel Entertainment is more favorable than Rush Street Interactive.

Earnings and Valuation

This table compares Rush Street Interactive 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
Rush Street Interactive	$924.08 million	5.36	$2.39 million	$0.20	108.38
Accel Entertainment	$1.23 billion	0.78	$35.25 million	$0.40	28.39

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.

Summary

Rush Street Interactive beats Accel Entertainment on 8 of the 15 factors compared between the two stocks.

About Rush Street Interactive

Rush Street Interactive, Inc. operates as an online casino and sports betting company in the United States, Canada, Mexico, and rest of Latin America. It provides real-money online casino, online and retail sports betting, and social gaming services. In addition, the company offers full suite of games comprising of bricks-and-mortar casinos, table games, and slot machines. The company markets its online casino and sports betting under BetRivers, PlaySugarHouse, and RushBet brands. Rush Street Interactive, Inc. was founded in 2012 and is headquartered in Chicago, Illinois.

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.