Brinker International (NYSE:EAT – Get Free Report) and Accel Entertainment (NYSE:ACEL – Get Free Report) are both consumer discretionary companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, dividends, earnings, risk, analyst recommendations, profitability and valuation.
Analyst Ratings
This is a breakdown of current ratings and price targets for Brinker International and Accel Entertainment, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Brinker International | 0 | 7 | 16 | 0 | 2.70 |
| Accel Entertainment | 0 | 3 | 4 | 0 | 2.57 |
Brinker International presently has a consensus target price of $243.80, suggesting a potential upside of 13.23%. Accel Entertainment has a consensus target price of $14.80, suggesting a potential upside of 27.08%. Given Accel Entertainment’s higher possible upside, analysts plainly believe Accel Entertainment is more favorable than Brinker International.
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Brinker International | $5.81 billion | 1.55 | $487.00 million | $10.89 | 19.77 |
| Accel Entertainment | $1.39 billion | 0.68 | $51.47 million | $0.67 | 17.38 |
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.
Insider and Institutional Ownership
55.4% of Accel Entertainment shares are held by institutional investors. 1.4% of Brinker International shares are held by insiders. Comparatively, 14.5% of Accel Entertainment shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Risk & Volatility
Brinker International has a beta of 1.25, meaning that its stock price is 25% more volatile than the S&P 500. Comparatively, Accel Entertainment has a beta of 1.01, meaning that its stock price is 1% more volatile than the S&P 500.
Profitability
This table compares Brinker International and Accel Entertainment’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Brinker International | 8.39% | 122.35% | 17.42% |
| Accel Entertainment | 4.08% | 22.30% | 5.59% |
Summary
Brinker International beats Accel Entertainment on 11 of the 14 factors compared between the two stocks.
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.
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.
Receive News & Ratings for Brinker International Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Brinker International and related companies with MarketBeat.com's FREE daily email newsletter.
