Accel Entertainment (NYSE:ACEL) vs. PLAYSTUDIOS (NASDAQ:MYPS) Financial Analysis

PLAYSTUDIOS (NASDAQ:MYPS) and Accel Entertainment (NYSE:ACEL) are both small-cap consumer discretionary companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, institutional ownership, risk, earnings, analyst recommendations, dividends and profitability.

Analyst Ratings

This is a breakdown of recent ratings for PLAYSTUDIOS and Accel Entertainment, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PLAYSTUDIOS	2	1	2	0	2.00
Accel Entertainment	0	3	4	0	2.57

PLAYSTUDIOS currently has a consensus price target of $2.00, indicating a potential upside of 233.61%. Accel Entertainment has a consensus price target of $14.00, indicating a potential upside of 24.33%. Given PLAYSTUDIOS’s higher probable upside, analysts plainly believe PLAYSTUDIOS is more favorable than Accel Entertainment.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
PLAYSTUDIOS	-15.10%	-8.71%	-6.77%
Accel Entertainment	3.34%	27.51%	6.76%

Earnings & Valuation

This table compares PLAYSTUDIOS 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
PLAYSTUDIOS	$289.43 million	0.26	-$28.69 million	($0.29)	-2.07
Accel Entertainment	$1.23 billion	0.76	$35.25 million	$0.50	22.52

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

Insider and Institutional Ownership

37.5% of PLAYSTUDIOS shares are held by institutional investors. Comparatively, 55.4% of Accel Entertainment shares are held by institutional investors. 14.7% of PLAYSTUDIOS 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 hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Volatility & Risk

PLAYSTUDIOS has a beta of 0.92, indicating that its share price is 8% less volatile than the S&P 500. Comparatively, Accel Entertainment has a beta of 1.07, indicating that its share price is 7% more volatile than the S&P 500.

Summary

Accel Entertainment beats PLAYSTUDIOS on 13 of the 14 factors compared between the two stocks.

About PLAYSTUDIOS

PLAYSTUDIOS, Inc. develops and publishes free-to-play casual games for mobile and social platforms in the United States and internationally. The company's game portfolio includes a diverse range of titles comprising social casino, card, puzzle, and adventure games. It also offers POP! Slots, myVEGAS Slots, my KONAMI Slots, MGM Slots Live, myVEGAS Blackjack, myVEGAS Bingo, Tetris, Solitaire, Spider Solitaire, Jumbline 2, Sudoku, and Mahjong games. PLAYSTUDIOS, Inc. is headquartered in Las Vegas, Nevada.

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.