Financial Analysis: Simplicity Esports and Gaming (OTCMKTS:WINR) vs. Accel Entertainment (NYSE:ACEL)

Simplicity Esports and Gaming (OTCMKTS:WINR) and Accel Entertainment (NYSE:ACEL) are both consumer discretionary companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, valuation, earnings, profitability, analyst recommendations, dividends and risk.

Insider & Institutional Ownership

55.4% of Accel Entertainment shares are held by institutional investors. 15.4% of Simplicity Esports and Gaming shares are held by company insiders. Comparatively, 14.5% of Accel Entertainment shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Simplicity Esports and Gaming and Accel Entertainment”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Simplicity Esports and Gaming	N/A	N/A	N/A	N/A	N/A
Accel Entertainment	$1.33 billion	0.73	$51.47 million	$0.60	20.01

Accel Entertainment has higher revenue and earnings than Simplicity Esports and Gaming.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Simplicity Esports and Gaming	N/A	N/A	N/A
Accel Entertainment	3.79%	25.70%	6.37%

Risk & Volatility

Simplicity Esports and Gaming has a beta of -1.21, suggesting that its stock price is 221% less volatile than the S&P 500. Comparatively, Accel Entertainment has a beta of 1, suggesting that its stock price has a similar volatility profile to the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Simplicity Esports and Gaming and Accel Entertainment, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Simplicity Esports and Gaming	0	0	0	0	0.00
Accel Entertainment	0	2	4	0	2.67

Accel Entertainment has a consensus target price of $14.67, suggesting a potential upside of 22.17%. Given Accel Entertainment’s stronger consensus rating and higher probable upside, analysts clearly believe Accel Entertainment is more favorable than Simplicity Esports and Gaming.

Summary

Accel Entertainment beats Simplicity Esports and Gaming on 9 of the 10 factors compared between the two stocks.

About Simplicity Esports and Gaming

Simplicity Esports and Gaming Company operates as an esports company in the United States and Brazil. It owns and manages professional esports teams, such as Flamengo Esports, one of the top League of Legends team in Latin America. It holds online, play-at-home esports tournaments, allowing gamers to compete for cash and prizes from the comfort of their homes. It also collects and royalty from over 40 esports gaming centers, owned by franchisees. The centers blend the latest high performance gaming PCs and consoles for casual and competitive gaming, sales of gaming related merchandise and equipment, and organized grassroots leagues and tournaments.

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.