Accel Entertainment (NYSE:ACEL – Get Free Report) and Brinker International (NYSE:EAT – Get Free Report) are both consumer discretionary companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, valuation, dividends, earnings and risk.
Insider & Institutional Ownership
55.4% of Accel Entertainment shares are owned by institutional investors. 14.5% of Accel Entertainment shares are owned by insiders. Comparatively, 1.4% of Brinker International 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.
Analyst Recommendations
This is a summary of recent ratings and price targets for Accel Entertainment and Brinker International, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Accel Entertainment | 0 | 3 | 4 | 0 | 2.57 |
| Brinker International | 0 | 7 | 16 | 0 | 2.70 |
Valuation and Earnings
This table compares Accel Entertainment and Brinker International”s top-line 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 | 0.70 | $51.47 million | $0.67 | 17.23 |
| Brinker International | $5.81 billion | 1.46 | $487.00 million | $10.89 | 18.69 |
Brinker International has higher revenue and earnings than Accel Entertainment. Accel Entertainment is trading at a lower price-to-earnings ratio than Brinker International, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Accel Entertainment has a beta of 1.01, meaning that its share price is 1% more volatile than the S&P 500. Comparatively, Brinker International has a beta of 1.25, meaning that its share price is 25% more volatile than the S&P 500.
Profitability
This table compares Accel Entertainment and Brinker International’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% |
| Brinker International | 8.39% | 122.35% | 17.42% |
Summary
Brinker International beats Accel Entertainment on 11 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 Brinker International
Brinker International, Inc., together with its subsidiaries, engages in the ownership, development, operation, and franchising of casual dining restaurants in the United States and internationally. It operates and franchises Chili's Grill & Bar and Maggiano's Little Italy restaurant brands. The company also operates virtual brands, It's Just Wings. Brinker International, Inc. was founded in 1975 and is headquartered in Dallas, Texas.
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