Accel Entertainment (NYSE:ACEL – Get Free Report) and Rush Street Interactive (NYSE:RSI – Get Free Report) are both consumer discretionary companies, but which is the better investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, dividends, profitability, analyst recommendations, earnings and valuation.
Profitability
This table compares Accel Entertainment and Rush Street Interactive’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Accel Entertainment | 4.49% | 22.62% | 5.82% |
| Rush Street Interactive | 2.56% | 24.46% | 10.94% |
Volatility & Risk
Accel Entertainment has a beta of 1.09, suggesting that its stock price is 9% more volatile than the S&P 500. Comparatively, Rush Street Interactive has a beta of 1.81, suggesting that its stock price is 81% more volatile than the S&P 500.
Earnings & Valuation
This table compares Accel Entertainment and Rush Street Interactive”s 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 | 0.84 | $51.47 million | $0.76 | 18.06 |
| Rush Street Interactive | $1.13 billion | 2.49 | $33.31 million | $0.33 | 37.14 |
Accel Entertainment has higher revenue and earnings than Rush Street Interactive. Accel Entertainment is trading at a lower price-to-earnings ratio than Rush Street Interactive, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of recent ratings for Accel Entertainment and Rush Street Interactive, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Accel Entertainment | 0 | 3 | 3 | 0 | 2.50 |
| Rush Street Interactive | 0 | 5 | 10 | 1 | 2.75 |
Accel Entertainment currently has a consensus price target of $14.25, indicating a potential upside of 3.83%. Rush Street Interactive has a consensus price target of $26.46, indicating a potential upside of 115.92%. Given Rush Street Interactive’s stronger consensus rating and higher possible upside, analysts plainly believe Rush Street Interactive is more favorable than Accel Entertainment.
Institutional & Insider Ownership
55.4% of Accel Entertainment shares are owned by institutional investors. Comparatively, 24.8% of Rush Street Interactive shares are owned by institutional investors. 14.5% of Accel Entertainment shares are owned by insiders. Comparatively, 52.9% of Rush Street Interactive shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Summary
Rush Street Interactive beats Accel Entertainment on 10 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 Rush Street Interactive
Rush Street Interactive, Inc. operates as an online casino and sports betting company in the United States, Canada, Mexico, and rest of Latin America. It provides real-money online casino, online and retail sports betting, and social gaming services. In addition, the company offers full suite of games comprising of bricks-and-mortar casinos, table games, and slot machines. The company markets its online casino and sports betting under BetRivers, PlaySugarHouse, and RushBet brands. Rush Street Interactive, Inc. was founded in 2012 and is headquartered in Chicago, Illinois.
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