Accel Entertainment (NYSE:ACEL – Get Free Report) and Dutch Bros (NYSE:BROS – Get Free Report) are both consumer discretionary companies, but which is the better stock? We will contrast the two companies based on the strength of their profitability, institutional ownership, dividends, risk, earnings, analyst recommendations and valuation.
Analyst Ratings
This is a breakdown of current ratings for Accel Entertainment and Dutch Bros, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Accel Entertainment | 0 | 3 | 4 | 0 | 2.57 |
| Dutch Bros | 0 | 4 | 21 | 1 | 2.88 |
Accel Entertainment currently has a consensus price target of $14.80, indicating a potential upside of 36.34%. Dutch Bros has a consensus price target of $71.88, indicating a potential upside of 85.79%. Given Dutch Bros’ stronger consensus rating and higher probable upside, analysts clearly believe Dutch Bros is more favorable than Accel Entertainment.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Accel Entertainment | 4.08% | 22.30% | 5.59% |
| Dutch Bros | 4.91% | 10.01% | 2.95% |
Volatility and Risk
Accel Entertainment has a beta of 1.07, meaning that its share price is 7% more volatile than the S&P 500. Comparatively, Dutch Bros has a beta of 2.31, meaning that its share price is 131% more volatile than the S&P 500.
Institutional and Insider Ownership
55.4% of Accel Entertainment shares are owned by institutional investors. Comparatively, 85.5% of Dutch Bros shares are owned by institutional investors. 14.5% of Accel Entertainment shares are owned by insiders. Comparatively, 38.9% of Dutch Bros shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Earnings and Valuation
This table compares Accel Entertainment and Dutch Bros”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Accel Entertainment | $1.33 billion | 0.66 | $51.47 million | $0.67 | 16.20 |
| Dutch Bros | $1.64 billion | 4.13 | $79.84 million | $0.72 | 53.73 |
Dutch Bros has higher revenue and earnings than Accel Entertainment. Accel Entertainment is trading at a lower price-to-earnings ratio than Dutch Bros, indicating that it is currently the more affordable of the two stocks.
Summary
Dutch Bros beats Accel Entertainment on 13 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 Dutch Bros
Dutch Bros Inc., together with its subsidiaries, operates and franchises drive-thru shops in the United States. The company operates through Company-Operated Shops and Franchising and Other segments. It serves through company-operated shops and online channels under Dutch Bros; Dutch Bros Coffee; Dutch Bros Rebel; Dutch Bros; and Blue Rebel brands. Dutch Bros Inc. was founded in 1992 and is headquartered in Grants Pass, Oregon.
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