Accel Entertainment (NYSE:ACEL – Get Free Report) and Golden Entertainment (NASDAQ:GDEN – Get Free Report) are both small-cap consumer discretionary companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, institutional ownership, dividends, earnings, profitability, analyst recommendations and risk.
Insider and Institutional Ownership
55.4% of Accel Entertainment shares are owned by institutional investors. Comparatively, 70.7% of Golden Entertainment shares are owned by institutional investors. 14.5% of Accel Entertainment shares are owned by company insiders. Comparatively, 29.1% of Golden Entertainment shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Earnings and Valuation
This table compares Accel Entertainment and Golden Entertainment”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Accel Entertainment | $1.33 billion | 0.76 | $51.47 million | $0.60 | 20.58 |
| Golden Entertainment | $634.91 million | 1.18 | -$6.04 million | ($0.25) | -113.68 |
Accel Entertainment has higher revenue and earnings than Golden Entertainment. Golden Entertainment 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 Ratings
This is a breakdown of recent ratings and target prices for Accel Entertainment and Golden Entertainment, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Accel Entertainment | 0 | 1 | 5 | 1 | 3.00 |
| Golden Entertainment | 1 | 5 | 1 | 0 | 2.00 |
Accel Entertainment presently has a consensus target price of $14.75, indicating a potential upside of 19.45%. Golden Entertainment has a consensus target price of $32.75, indicating a potential upside of 15.24%. Given Accel Entertainment’s stronger consensus rating and higher possible upside, research analysts plainly believe Accel Entertainment is more favorable than Golden Entertainment.
Profitability
This table compares Accel Entertainment and Golden Entertainment’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Accel Entertainment | 3.87% | 27.49% | 6.77% |
| Golden Entertainment | -0.95% | 0.51% | 0.22% |
Risk and Volatility
Accel Entertainment has a beta of 1.05, meaning that its stock price is 5% more volatile than the S&P 500. Comparatively, Golden Entertainment has a beta of 1.4, meaning that its stock price is 40% more volatile than the S&P 500.
Summary
Accel Entertainment beats Golden Entertainment on 11 of the 15 factors compared between the two stocks.
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.
About Golden Entertainment
Golden Entertainment, Inc. owns and operates a diversified entertainment platform in the United States. The company operates through four segments; Nevada Casino Resorts, Nevada Locals Casinos, Nevada Taverns, and Distributed Gaming. It also operates casino, casino resorts, and taverns; and slot machines in third party non-casino locations. The company was incorporated in 1998 and is headquartered in Las Vegas, Nevada.
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