Wyndham Hotels & Resorts (NYSE:WH – Get Free Report) and Accel Entertainment (NYSE:ACEL – Get Free Report) are both consumer discretionary companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, profitability, risk, analyst recommendations, dividends, institutional ownership and valuation.
Risk and Volatility
Wyndham Hotels & Resorts has a beta of 0.63, indicating that its stock price is 37% less volatile than the S&P 500. Comparatively, Accel Entertainment has a beta of 1.02, indicating that its stock price is 2% more volatile than the S&P 500.
Insider and Institutional Ownership
93.5% of Wyndham Hotels & Resorts shares are owned by institutional investors. Comparatively, 55.4% of Accel Entertainment shares are owned by institutional investors. 2.3% of Wyndham Hotels & Resorts shares are owned by company insiders. Comparatively, 14.5% of Accel Entertainment shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Wyndham Hotels & Resorts | 0 | 5 | 8 | 0 | 2.62 |
| Accel Entertainment | 0 | 2 | 4 | 0 | 2.67 |
Wyndham Hotels & Resorts currently has a consensus target price of $97.00, suggesting a potential upside of 27.31%. Accel Entertainment has a consensus target price of $15.00, suggesting a potential upside of 20.65%. Given Wyndham Hotels & Resorts’ higher possible upside, equities research analysts plainly believe Wyndham Hotels & Resorts is more favorable than Accel Entertainment.
Valuation & Earnings
This table compares Wyndham Hotels & Resorts and Accel Entertainment”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Wyndham Hotels & Resorts | $1.42 billion | 3.99 | $193.00 million | $2.72 | 28.01 |
| Accel Entertainment | $1.39 billion | 0.73 | $51.47 million | $0.67 | 18.56 |
Wyndham Hotels & Resorts has higher revenue and earnings than Accel Entertainment. Accel Entertainment is trading at a lower price-to-earnings ratio than Wyndham Hotels & Resorts, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Wyndham Hotels & Resorts and Accel Entertainment’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Wyndham Hotels & Resorts | 14.67% | 74.22% | 8.58% |
| Accel Entertainment | 4.08% | 22.59% | 5.61% |
Summary
Wyndham Hotels & Resorts beats Accel Entertainment on 11 of the 14 factors compared between the two stocks.
About Wyndham Hotels & Resorts
Wyndham Hotels & Resorts, Inc. engages in the franchise and operation of hotels under the Wyndham brand. It operates through the Hotel Franchising and Hotel Management segments. The Hotel Franchising segment focuses on licensing the company’s lodging brands and providing related services to third-party hotel owners and others. The Hotel Management segment provides management services. The company was founded in 1990 and is headquartered in Parsippany, NJ.
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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