Contrasting Accel Entertainment (NYSE:ACEL) and Wyndham Hotels & Resorts (NYSE:WH)

Wyndham Hotels & Resorts (NYSE:WH) and Accel Entertainment (NYSE:ACEL) are both consumer discretionary companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, risk, profitability, institutional ownership, analyst recommendations, earnings and valuation.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Wyndham Hotels & Resorts and Accel Entertainment, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Wyndham Hotels & Resorts	0	5	8	0	2.62
Accel Entertainment	0	2	4	0	2.67

Wyndham Hotels & Resorts presently has a consensus price target of $96.09, suggesting a potential upside of 29.68%. Accel Entertainment has a consensus price target of $15.00, suggesting a potential upside of 20.87%. Given Wyndham Hotels & Resorts’ higher probable upside, equities analysts clearly believe Wyndham Hotels & Resorts is more favorable than Accel Entertainment.

Risk & Volatility

Wyndham Hotels & Resorts has a beta of 0.63, suggesting that its share price is 37% less volatile than the S&P 500. Comparatively, Accel Entertainment has a beta of 1.02, suggesting that its share price is 2% more volatile than the S&P 500.

Institutional and Insider Ownership

93.5% of Wyndham Hotels & Resorts shares are held by institutional investors. Comparatively, 55.4% of Accel Entertainment shares are held by institutional investors. 2.3% of Wyndham Hotels & Resorts 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, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Wyndham Hotels & Resorts and Accel Entertainment’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Wyndham Hotels & Resorts	14.67%	74.22%	8.58%
Accel Entertainment	4.08%	22.30%	5.59%

Earnings & Valuation

This table compares Wyndham Hotels & Resorts and Accel Entertainment”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Wyndham Hotels & Resorts	$1.43 billion	3.85	$193.00 million	$2.72	27.24
Accel Entertainment	$1.33 billion	0.76	$51.47 million	$0.67	18.52

Wyndham Hotels & Resorts has higher revenue and earnings than Accel Entertainment. Accel Entertainment is trading at a lower price-to-earnings ratio than Wyndham Hotels & Resorts, indicating that it is currently the more affordable of the two stocks.

Summary

Wyndham Hotels & Resorts beats Accel Entertainment on 11 of the 14 factors compared between the two stocks.

About Wyndham Hotels & Resorts

Wyndham Hotels & Resorts, Inc. engages in the franchise and operation of hotels under the Wyndham brand. It operates through the Hotel Franchising and Hotel Management segments. The Hotel Franchising segment focuses on licensing the company’s lodging brands and providing related services to third-party hotel owners and others. The Hotel Management segment provides management services. The company was founded in 1990 and is headquartered in Parsippany, NJ.

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.