Churchill Downs (NASDAQ:CHDN – Get Free Report) and Accel Entertainment (NYSE:ACEL – Get Free Report) are both consumer discretionary companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, analyst recommendations, earnings, risk, institutional ownership, profitability and dividends.
Profitability
This table compares Churchill Downs and Accel Entertainment’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Churchill Downs | 13.21% | 43.50% | 6.10% |
| Accel Entertainment | 3.79% | 25.70% | 6.37% |
Valuation & Earnings
This table compares Churchill Downs and Accel Entertainment”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Churchill Downs | $2.93 billion | 2.14 | $383.00 million | $5.40 | 16.62 |
| Accel Entertainment | $1.36 billion | 0.73 | $51.47 million | $0.60 | 20.26 |
Churchill Downs has higher revenue and earnings than Accel Entertainment. Churchill Downs is trading at a lower price-to-earnings ratio than Accel Entertainment, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Churchill Downs has a beta of 0.68, meaning that its share price is 32% less volatile than the S&P 500. Comparatively, Accel Entertainment has a beta of 1.04, meaning that its share price is 4% more volatile than the S&P 500.
Institutional and Insider Ownership
82.6% of Churchill Downs shares are held by institutional investors. Comparatively, 55.4% of Accel Entertainment shares are held by institutional investors. 5.9% of Churchill Downs shares are held by company insiders. Comparatively, 14.5% of Accel Entertainment shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Analyst Ratings
This is a summary of current ratings and recommmendations for Churchill Downs and Accel Entertainment, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Churchill Downs | 1 | 0 | 11 | 0 | 2.83 |
| Accel Entertainment | 0 | 3 | 3 | 0 | 2.50 |
Churchill Downs presently has a consensus target price of $139.00, suggesting a potential upside of 54.84%. Accel Entertainment has a consensus target price of $14.67, suggesting a potential upside of 20.66%. Given Churchill Downs’ stronger consensus rating and higher possible upside, equities research analysts clearly believe Churchill Downs is more favorable than Accel Entertainment.
Summary
Churchill Downs beats Accel Entertainment on 10 of the 14 factors compared between the two stocks.
About Churchill Downs
Churchill Downs Incorporated operates as a racing, online wagering, and gaming entertainment company in the United States. It operates through three segments: Live and Historical Racing, TwinSpires, and Gaming. The company operates pari-mutuel gaming entertainment venues; TwinSpires, an online wagering platform for horse racing, sports, and iGaming; retail sports books; casino gaming; and Terre Haute Casino Resort. It also offers streaming video of live horse races, replays, and an assortment of racing and handicapping information; and provides the Bloodstock Research Information Services platform for horse racing statistical data. In addition, the company manufactures and operates pari-mutuel wagering systems for racetracks, off-track betting facilities, and other pari-mutuel wagering businesses. Churchill Downs Incorporated was founded in 1875 and is headquartered in Louisville, Kentucky.
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.
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