Accel Entertainment (NYSE:ACEL – Get Free Report) and Red Rock Resorts (NASDAQ:RRR – Get Free Report) are both consumer discretionary companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, profitability, earnings, dividends, valuation, risk and analyst recommendations.
Profitability
This table compares Accel Entertainment and Red Rock Resorts’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Accel Entertainment | 3.79% | 25.70% | 6.37% |
| Red Rock Resorts | 9.21% | 61.67% | 4.51% |
Analyst Ratings
This is a summary of recent ratings and price targets for Accel Entertainment and Red Rock Resorts, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Accel Entertainment | 0 | 2 | 4 | 0 | 2.67 |
| Red Rock Resorts | 1 | 2 | 13 | 1 | 2.82 |
Insider and Institutional Ownership
55.4% of Accel Entertainment shares are held by institutional investors. Comparatively, 47.8% of Red Rock Resorts shares are held by institutional investors. 14.5% of Accel Entertainment shares are held by company insiders. Comparatively, 54.3% of Red Rock Resorts shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Earnings & Valuation
This table compares Accel Entertainment and Red Rock Resorts”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Accel Entertainment | $1.33 billion | 0.77 | $51.47 million | $0.60 | 20.87 |
| Red Rock Resorts | $2.01 billion | 3.34 | $188.07 million | $3.11 | 20.58 |
Red Rock Resorts has higher revenue and earnings than Accel Entertainment. Red Rock Resorts is trading at a lower price-to-earnings ratio than Accel Entertainment, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Accel Entertainment has a beta of 1, meaning that its share price has a similar volatility profile to the S&P 500.Comparatively, Red Rock Resorts has a beta of 1.35, meaning that its share price is 35% more volatile than the S&P 500.
Summary
Red Rock Resorts beats Accel 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 Red Rock Resorts
Red Rock Resorts, Inc., through its interest in Station Casinos LLC, develops and operates casino and entertainment properties in the United States. The company owns and operates gaming and entertainment facilities, including Durango Casino & Resort and smaller casinos in the Las Vegas regional market. The company was formerly known as Station Casinos Corp. and changed its name to Red Rock Resorts, Inc. in January 2016. Red Rock Resorts, Inc. was founded in 1976 and is based in Las Vegas, Nevada.
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