Accel Entertainment (NYSE:ACEL – Get Free Report) and Life Time Group (NYSE:LTH – Get Free Report) are both consumer discretionary companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, earnings, institutional ownership, profitability, dividends, analyst recommendations and valuation.
Institutional and Insider Ownership
55.4% of Accel Entertainment shares are held by institutional investors. Comparatively, 79.4% of Life Time Group shares are held by institutional investors. 14.5% of Accel Entertainment shares are held by insiders. Comparatively, 13.3% of Life Time Group shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Analyst Recommendations
This is a summary of recent ratings and target prices for Accel Entertainment and Life Time Group, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Accel Entertainment | 0 | 3 | 4 | 0 | 2.57 |
| Life Time Group | 0 | 1 | 13 | 1 | 3.00 |
Accel Entertainment currently has a consensus target price of $14.60, suggesting a potential upside of 32.92%. Life Time Group has a consensus target price of $55.31, suggesting a potential upside of 32.07%. Given Accel Entertainment’s higher possible upside, analysts clearly believe Accel Entertainment is more favorable than Life Time Group.
Risk & Volatility
Accel Entertainment has a beta of 1.07, indicating that its share price is 7% more volatile than the S&P 500. Comparatively, Life Time Group has a beta of 1.49, indicating that its share price is 49% more volatile than the S&P 500.
Profitability
This table compares Accel Entertainment and Life Time Group’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% |
| Life Time Group | 13.07% | 10.56% | 4.13% |
Earnings & Valuation
This table compares Accel Entertainment and Life Time Group”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 | 0.67 | $51.47 million | $0.67 | 16.39 |
| Life Time Group | $3.00 billion | 3.12 | $373.67 million | $1.84 | 22.76 |
Life Time Group has higher revenue and earnings than Accel Entertainment. Accel Entertainment is trading at a lower price-to-earnings ratio than Life Time Group, indicating that it is currently the more affordable of the two stocks.
Summary
Life Time Group beats Accel Entertainment on 11 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 Life Time Group
Life Time Group Holdings, Inc. provides health, fitness, and wellness experiences to a community of individual members in the United States and Canada. It primarily engages in designing, building, and operating of sports and athletic, professional fitness, family recreation, and spa centers in a resort-like environment, principally in suburban and urban locations of metropolitan areas. The company also offers fitness floors with equipment, locker rooms, group fitness studios, indoor and outdoor pools, bistros, indoor and outdoor tennis courts, pickleball courts, basketball courts, LifeSpa, LifeCafe, and childcare and Kids Academy learning spaces. In addition, its Life Time Digital provides live streaming fitness classes, remote goal-based personal training, nutrition and weight loss support, curated award-winning health, and fitness and wellness content. The company is also involved in media activities, conducting athletic events, and provision of related services. It operates various centers, including ground leases. The company was formerly known as LTF Holdings, Inc. and changed its name to Life Time Group Holdings, Inc. in June 21, 2021. Life Time Group Holdings, Inc. was founded in 1992 and is headquartered in Chanhassen, Minnesota.
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