Comparing Accel Entertainment (NYSE:ACEL) and Life Time Group (NYSE:LTH)

Life Time Group (NYSE:LTH) and Accel Entertainment (NYSE:ACEL) are both consumer discretionary companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, profitability, dividends, earnings, analyst recommendations, valuation and risk.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Life Time Group	13.07%	10.56%	4.13%
Accel Entertainment	4.08%	22.30%	5.59%

Valuation & Earnings

This table compares Life Time Group and Accel Entertainment”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Life Time Group	$3.00 billion	3.03	$373.67 million	$1.84	22.09
Accel Entertainment	$1.33 billion	0.66	$51.47 million	$0.67	16.19

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

Risk and Volatility

Life Time Group has a beta of 1.49, indicating that its stock price is 49% more volatile than the S&P 500. Comparatively, Accel Entertainment has a beta of 1.07, indicating that its stock price is 7% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations for Life Time Group and Accel Entertainment, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Life Time Group	0	0	13	2	3.13
Accel Entertainment	0	3	4	0	2.57

Life Time Group presently has a consensus target price of $55.31, indicating a potential upside of 36.10%. Accel Entertainment has a consensus target price of $14.80, indicating a potential upside of 36.46%. Given Accel Entertainment’s higher possible upside, analysts clearly believe Accel Entertainment is more favorable than Life Time Group.

Institutional and Insider Ownership

79.4% of Life Time Group shares are held by institutional investors. Comparatively, 55.4% of Accel Entertainment shares are held by institutional investors. 13.3% of Life Time Group shares are held by insiders. Comparatively, 14.5% of Accel Entertainment shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Life Time Group beats Accel Entertainment on 11 of the 15 factors compared between the two stocks.

About Life Time Group

Life Time Group Holdings, Inc. provides health, fitness, and wellness experiences to a community of individual members in the United States and Canada. It primarily engages in designing, building, and operating of sports and athletic, professional fitness, family recreation, and spa centers in a resort-like environment, principally in suburban and urban locations of metropolitan areas. The company also offers fitness floors with equipment, locker rooms, group fitness studios, indoor and outdoor pools, bistros, indoor and outdoor tennis courts, pickleball courts, basketball courts, LifeSpa, LifeCafe, and childcare and Kids Academy learning spaces. In addition, its Life Time Digital provides live streaming fitness classes, remote goal-based personal training, nutrition and weight loss support, curated award-winning health, and fitness and wellness content. The company is also involved in media activities, conducting athletic events, and provision of related services. It operates various centers, including ground leases. The company was formerly known as LTF Holdings, Inc. and changed its name to Life Time Group Holdings, Inc. in June 21, 2021. Life Time Group Holdings, Inc. was founded in 1992 and is headquartered in Chanhassen, Minnesota.

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.