Comparing Accel Entertainment (NYSE:ACEL) & Genius Sports (NYSE:GENI)

Genius Sports (NYSE:GENIGet Free Report) and Accel Entertainment (NYSE:ACELGet Free Report) are both small-cap consumer discretionary companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, earnings, analyst recommendations, dividends, institutional ownership, valuation and risk.

Valuation and Earnings

This table compares Genius Sports and Accel Entertainment”s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Genius Sports $669.49 million 2.81 -$111.58 million ($0.68) -11.24
Accel Entertainment $1.39 billion 0.69 $51.47 million $0.67 17.64

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

Analyst Recommendations

This is a breakdown of current ratings for Genius Sports and Accel Entertainment, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Genius Sports 2 2 14 1 2.74
Accel Entertainment 0 3 4 0 2.57

Genius Sports presently has a consensus target price of $11.44, indicating a potential upside of 49.75%. Accel Entertainment has a consensus target price of $14.80, indicating a potential upside of 25.21%. Given Genius Sports’ stronger consensus rating and higher probable upside, equities research analysts plainly believe Genius Sports is more favorable than Accel Entertainment.

Institutional & Insider Ownership

81.9% of Genius Sports shares are owned by institutional investors. Comparatively, 55.4% of Accel Entertainment shares are owned by institutional investors. 16.6% of Genius Sports 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 is poised for long-term growth.

Volatility and Risk

Genius Sports has a beta of 1.9, meaning that its share price is 90% more volatile than the S&P 500. Comparatively, Accel Entertainment has a beta of 1.02, meaning that its share price is 2% more volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Genius Sports -22.99% -23.83% -12.68%
Accel Entertainment 4.08% 22.30% 5.59%

Summary

Genius Sports beats Accel Entertainment on 8 of the 15 factors compared between the two stocks.

About Genius Sports

(Get Free Report)

Genius Sports Limited engages in the development and sale of technology-led products and services to the sports, sports betting, and sports media industries. It offers technology infrastructure for the collection, integration, and distribution of live data of sports leagues; streaming solutions comprising technology, automatic production, and distribution for sports to commercialize video footage of their games; and end-to-end integrity services to sports leagues, such as full-time active monitoring technology, which uses mathematical algorithms to identify and flag suspicious betting activity in global betting markets, as well as a full suite of online and offline educational and consultancy services. The company also provides live sports data collection; pre-game and in-game odds feeds; risk management services, including customer profiling, monitoring of incoming bets, automated acceptance and rejection of bets, and limit setting; live streaming services; creation, delivery, and optimization of digital marketing campaigns, such as data-driven personalized ad creative; and fan engagement widgets for digital publishers that offer live game statistics and betting-related content. The company was founded in 2001 and is headquartered in London, the United Kingdom.

About Accel Entertainment

(Get Free Report)

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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