Head-To-Head Review: Accel Entertainment (NYSE:ACEL) & PLAYSTUDIOS (NASDAQ:MYPS)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Accel Entertainment	3.34%	27.51%	6.76%
PLAYSTUDIOS	-15.10%	-8.71%	-6.77%

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Accel Entertainment	0	3	4	0	2.57
PLAYSTUDIOS	2	1	2	0	2.00

Accel Entertainment presently has a consensus price target of $14.00, suggesting a potential upside of 23.84%. PLAYSTUDIOS has a consensus price target of $2.00, suggesting a potential upside of 252.86%. Given PLAYSTUDIOS’s higher probable upside, analysts clearly believe PLAYSTUDIOS is more favorable than Accel Entertainment.

Valuation & Earnings

This table compares Accel Entertainment and PLAYSTUDIOS”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Accel Entertainment	$1.31 billion	0.72	$35.25 million	$0.50	22.61
PLAYSTUDIOS	$289.43 million	0.25	-$28.69 million	($0.29)	-1.95

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

Institutional & Insider Ownership

55.4% of Accel Entertainment shares are owned by institutional investors. Comparatively, 37.5% of PLAYSTUDIOS shares are owned by institutional investors. 18.3% of Accel Entertainment shares are owned by company insiders. Comparatively, 14.7% of PLAYSTUDIOS shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Risk & Volatility

Accel Entertainment has a beta of 1.07, meaning that its stock price is 7% more volatile than the S&P 500. Comparatively, PLAYSTUDIOS has a beta of 0.92, meaning that its stock price is 8% less volatile than the S&P 500.

Summary

Accel Entertainment beats PLAYSTUDIOS on 13 of the 14 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 PLAYSTUDIOS

PLAYSTUDIOS, Inc. develops and publishes free-to-play casual games for mobile and social platforms in the United States and internationally. The company's game portfolio includes a diverse range of titles comprising social casino, card, puzzle, and adventure games. It also offers POP! Slots, myVEGAS Slots, my KONAMI Slots, MGM Slots Live, myVEGAS Blackjack, myVEGAS Bingo, Tetris, Solitaire, Spider Solitaire, Jumbline 2, Sudoku, and Mahjong games. PLAYSTUDIOS, Inc. is headquartered in Las Vegas, Nevada.