Accel Entertainment (NYSE:ACEL – Get Free Report) and Sweetgreen (NYSE:SG – Get Free Report) are both small-cap consumer discretionary companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, profitability, earnings, analyst recommendations, institutional ownership, risk and valuation.
Analyst Ratings
This is a summary of recent recommendations for Accel Entertainment and Sweetgreen, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Accel Entertainment | 0 | 3 | 4 | 0 | 2.57 |
| Sweetgreen | 3 | 11 | 5 | 0 | 2.11 |
Accel Entertainment currently has a consensus target price of $14.80, suggesting a potential upside of 26.61%. Sweetgreen has a consensus target price of $7.21, suggesting a potential upside of 3.42%. Given Accel Entertainment’s stronger consensus rating and higher possible upside, research analysts plainly believe Accel Entertainment is more favorable than Sweetgreen.
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Accel Entertainment | $1.39 billion | 0.68 | $51.47 million | $0.67 | 17.45 |
| Sweetgreen | $679.47 million | 1.22 | -$134.07 million | $0.10 | 69.73 |
Accel Entertainment has higher revenue and earnings than Sweetgreen. Accel Entertainment is trading at a lower price-to-earnings ratio than Sweetgreen, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
55.4% of Accel Entertainment shares are held by institutional investors. Comparatively, 95.8% of Sweetgreen shares are held by institutional investors. 14.5% of Accel Entertainment shares are held by insiders. Comparatively, 18.2% of Sweetgreen shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Risk and Volatility
Accel Entertainment has a beta of 1.01, indicating that its share price is 1% more volatile than the S&P 500. Comparatively, Sweetgreen has a beta of 2.2, indicating that its share price is 120% more volatile than the S&P 500.
Profitability
This table compares Accel Entertainment and Sweetgreen’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Accel Entertainment | 4.08% | 22.30% | 5.59% |
| Sweetgreen | 2.01% | -32.94% | -16.42% |
Summary
Accel Entertainment beats Sweetgreen on 8 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 Sweetgreen
Sweetgreen, Inc., together with its subsidiaries, operates fast food restaurants serving healthy foods at scale in the United States. The company also accepts orders through its online and mobile ordering platforms, as well as sells gift cards that do not have an expiration date and can be redeemed. The company was founded in 2006 and is headquartered in Los Angeles, California.
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