Critical Review: Chilco River (OTCMKTS:CRVH) versus Accel Entertainment (NYSE:ACEL)

Chilco River (OTCMKTS:CRVH) and Accel Entertainment (NYSE:ACEL) are both small-cap consumer discretionary companies, but which is the superior business? We will contrast the two companies based on the strength of their profitability, institutional ownership, dividends, valuation, analyst recommendations, earnings and risk.

Insider and Institutional Ownership

55.4% of Accel Entertainment shares are held by institutional investors. 18.3% 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 stock is poised for long-term growth.

Earnings and Valuation

This table compares Chilco River and Accel Entertainment”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Chilco River	N/A	N/A	N/A	N/A	N/A
Accel Entertainment	$1.23 billion	0.76	$35.25 million	$0.50	22.47

Accel Entertainment has higher revenue and earnings than Chilco River.

Risk and Volatility

Chilco River has a beta of 11.16, meaning that its stock price is 1,016% more volatile than the S&P 500. Comparatively, Accel Entertainment has a beta of 1.07, meaning that its stock price is 7% more volatile than the S&P 500.

Profitability

This table compares Chilco River and Accel Entertainment’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Chilco River	N/A	N/A	N/A
Accel Entertainment	3.34%	27.51%	6.76%

Analyst Recommendations

This is a summary of recent ratings and target prices for Chilco River and Accel Entertainment, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Chilco River	0	0	0	0	0.00
Accel Entertainment	0	2	4	0	2.67

Accel Entertainment has a consensus price target of $14.25, suggesting a potential upside of 26.86%. Given Accel Entertainment’s stronger consensus rating and higher possible upside, analysts clearly believe Accel Entertainment is more favorable than Chilco River.

Summary

Accel Entertainment beats Chilco River on 9 of the 10 factors compared between the two stocks.

About Chilco River

Chilco River Holdings, Inc. engages in developing products for the consumable products market. The company is based in Los Angeles, California.

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.