Accel Entertainment (NYSE:ACEL) versus Flutter Entertainment (NYSE:FLUT) Critical Review

Flutter Entertainment (NYSE:FLUT) and Accel Entertainment (NYSE:ACEL) are both consumer discretionary companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, valuation, dividends, risk, profitability, analyst recommendations and institutional ownership.

Volatility & Risk

Flutter Entertainment has a beta of 1.88, indicating that its stock price is 88% more volatile than the S&P 500. Comparatively, Accel Entertainment has a beta of 1.07, indicating that its stock price is 7% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Flutter Entertainment	-0.95%	14.42%	5.23%
Accel Entertainment	3.34%	27.51%	6.76%

Institutional and Insider Ownership

55.4% of Accel Entertainment shares are held by institutional investors. 0.1% of Flutter Entertainment shares are held by insiders. Comparatively, 18.3% of Accel Entertainment shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations and price targets for Flutter Entertainment and Accel Entertainment, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Flutter Entertainment	2	5	16	3	2.77
Accel Entertainment	0	3	4	0	2.57

Flutter Entertainment currently has a consensus price target of $272.48, indicating a potential upside of 89.20%. Accel Entertainment has a consensus price target of $14.00, indicating a potential upside of 26.17%. Given Flutter Entertainment’s stronger consensus rating and higher possible upside, equities analysts clearly believe Flutter Entertainment is more favorable than Accel Entertainment.

Earnings & Valuation

This table compares Flutter Entertainment and Accel Entertainment”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Flutter Entertainment	$14.05 billion	1.80	$43.00 million	($1.30)	-110.78
Accel Entertainment	$1.31 billion	0.71	$35.25 million	$0.50	22.19

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

Summary

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

About Flutter Entertainment

Flutter Entertainment plc operates as a sports betting and gaming company in the United Kingdom, Ireland, Australia, the United States, Italy, and internationally. The company operates through four segments: UK & Ireland, Australia, International, and US. It offers sports betting, iGaming, daily fantasy sports, online racing wagering, and TV broadcasting products; sportsbooks and exchange sports betting products, and gaming products; and online sports betting. In addition, it provides online poker, casino, and rummy. Further, it provides sports betting and gaming services through paddypower.com, betfair.com, sportsbet.com.au, tvg.com, us.betfair.com, fanduel.com, adjarabet.com, pokerstars.com, Skybet.com, tombola.com, sisal.com, and maxbet.rs websites under the FanDuel, Sky Betting & Gaming, Sportsbet, PokerStars, Paddy Power, Sisal, tombola, Betfair, MaxBet, TVG, Stardust, Junglee Games, and Adjarabet brands, as well as live poker tours and events. The company was formerly known as Paddy Power Betfair plc and changed its name to Flutter Entertainment plc in 2019. Flutter Entertainment plc was incorporated in 1958 and is headquartered in Dublin, Ireland.

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.