Head-To-Head Survey: Wyndham Hotels & Resorts (NYSE:WH) & Accel Entertainment (NYSE:ACEL)

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

Institutional and Insider Ownership

55.4% of Accel Entertainment shares are owned by institutional investors. Comparatively, 93.5% of Wyndham Hotels & Resorts shares are owned by institutional investors. 14.5% of Accel Entertainment shares are owned by insiders. Comparatively, 2.3% of Wyndham Hotels & Resorts shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Accel Entertainment and Wyndham Hotels & Resorts”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Accel Entertainment	$1.39 billion	0.73	$51.47 million	$0.67	18.56
Wyndham Hotels & Resorts	$1.42 billion	3.99	$193.00 million	$2.72	28.01

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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Accel Entertainment	4.08%	22.59%	5.61%
Wyndham Hotels & Resorts	14.67%	74.22%	8.58%

Analyst Ratings

This is a summary of current ratings and price targets for Accel Entertainment and Wyndham Hotels & Resorts, as reported by MarketBeat.

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

Accel Entertainment currently has a consensus target price of $15.00, suggesting a potential upside of 20.65%. Wyndham Hotels & Resorts has a consensus target price of $97.00, suggesting a potential upside of 27.31%. Given Wyndham Hotels & Resorts’ higher probable upside, analysts clearly believe Wyndham Hotels & Resorts is more favorable than Accel Entertainment.

Risk & Volatility

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

Summary

Wyndham Hotels & Resorts beats Accel Entertainment on 11 of the 14 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 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.