Accel Entertainment (NYSE:ACEL) vs. Playtika (NASDAQ:PLTK) Head-To-Head Survey

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

Volatility and Risk

Playtika has a beta of 0.86, indicating that its share price is 14% less volatile than the S&P 500. Comparatively, Accel Entertainment has a beta of 1.09, indicating that its share price is 9% more volatile than the S&P 500.

Valuation and Earnings

This table compares Playtika 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
Playtika	$2.55 billion	0.53	$162.20 million	$0.24	15.08
Accel Entertainment	$1.23 billion	0.72	$35.25 million	$0.40	26.24

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

Insider and Institutional Ownership

11.9% of Playtika shares are held by institutional investors. Comparatively, 55.4% of Accel Entertainment shares are held by institutional investors. 5.1% of Playtika shares are held by insiders. Comparatively, 18.3% of Accel Entertainment shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Playtika and Accel Entertainment, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Playtika	1	6	3	0	2.20
Accel Entertainment	0	2	2	0	2.50

Playtika presently has a consensus target price of $6.66, suggesting a potential upside of 83.87%. Accel Entertainment has a consensus target price of $15.50, suggesting a potential upside of 47.69%. Given Playtika’s higher probable upside, equities research analysts clearly believe Playtika is more favorable than Accel Entertainment.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Playtika	3.23%	-83.90%	2.59%
Accel Entertainment	2.75%	28.46%	6.81%

Summary

Accel Entertainment beats Playtika on 9 of the 14 factors compared between the two stocks.

About Playtika

Playtika Holding Corp., together with its subsidiaries, develops mobile games in the United States, Europe, Middle East, Africa, Asia pacific, and internationally. The company owns a portfolio of casual and social casino-themed games. It distributes its games to the end customer through various web and mobile platforms and direct-to-consumer platforms. Playtika Holding Corp. was founded in 2010 and is headquartered in Herzliya Pituach, Israel. Playtika Holding Corp. is a subsidiary of Playtika Holding UK II Limited.

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.