PENN Entertainment (NASDAQ:PENN – Get Free Report) and Accel Entertainment (NYSE:ACEL – Get Free Report) are both small-cap consumer discretionary companies, but which is the better business? We will contrast the two companies based on the strength of their analyst recommendations, earnings, risk, valuation, profitability, institutional ownership and dividends.
Earnings and Valuation
This table compares PENN Entertainment 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 | |
| PENN Entertainment | $6.96 billion | 0.28 | -$843.10 million | ($6.36) | -2.30 |
| Accel Entertainment | $1.33 billion | 0.65 | $51.47 million | $0.67 | 15.93 |
Institutional & Insider Ownership
91.7% of PENN Entertainment shares are held by institutional investors. Comparatively, 55.4% of Accel Entertainment shares are held by institutional investors. 3.2% of PENN Entertainment shares are held by company insiders. Comparatively, 14.5% of Accel Entertainment shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Volatility and Risk
PENN Entertainment has a beta of 1.38, suggesting that its stock price is 38% more volatile than the S&P 500. Comparatively, Accel Entertainment has a beta of 1.01, suggesting that its stock price is 1% more volatile than the S&P 500.
Profitability
This table compares PENN Entertainment and Accel Entertainment’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| PENN Entertainment | -12.66% | 2.93% | 0.39% |
| Accel Entertainment | 4.08% | 22.30% | 5.59% |
Analyst Ratings
This is a summary of recent recommendations and price targets for PENN Entertainment and Accel Entertainment, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| PENN Entertainment | 1 | 7 | 12 | 0 | 2.55 |
| Accel Entertainment | 0 | 3 | 4 | 0 | 2.57 |
PENN Entertainment currently has a consensus price target of $23.53, indicating a potential upside of 60.61%. Accel Entertainment has a consensus price target of $14.80, indicating a potential upside of 38.64%. Given PENN Entertainment’s higher possible upside, equities research analysts plainly believe PENN Entertainment is more favorable than Accel Entertainment.
Summary
Accel Entertainment beats PENN Entertainment on 9 of the 14 factors compared between the two stocks.
About PENN Entertainment
PENN Entertainment, Inc., together with its subsidiaries, provides integrated entertainment, sports content, and casino gaming experiences. The company operates through five segments: Northeast, South, West, Midwest, and Interactive. It operates online sports betting in various jurisdictions; and iCasino under Hollywood Casino, L'Auberge, ESPN BET, and theScore Bet Sportsbook and Casino brands. The company's portfolio also includes PENN Play, customer loyalty program, which offers a set of rewards and experiences for business channels. In addition, it owns various trademarks and service marks, including Ameristar, Argosy, Boomtown, Hollywood Casino, Hollywood Gaming, L'Auberge, PENN Play, theScore, theScore Bet, theScore esports, and M Resort. The company was formerly known as Penn National Gaming, Inc. and changed its name to PENN Entertainment, Inc. in August 2022. PENN Entertainment, Inc. was founded in 1972 and is based in Wyomissing, Pennsylvania.
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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