Red Rock Resorts (NASDAQ:RRR – Get Free Report) and Accel Entertainment (NYSE:ACEL – Get Free Report) are both consumer discretionary companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, earnings, dividends, valuation, profitability and institutional ownership.
Profitability
This table compares Red Rock Resorts and Accel Entertainment’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Red Rock Resorts | 9.21% | 61.67% | 4.51% |
| Accel Entertainment | 3.79% | 25.70% | 6.37% |
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for Red Rock Resorts and Accel Entertainment, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Red Rock Resorts | 1 | 3 | 14 | 0 | 2.72 |
| Accel Entertainment | 0 | 2 | 4 | 0 | 2.67 |
Institutional & Insider Ownership
47.8% of Red Rock Resorts shares are held by institutional investors. Comparatively, 55.4% of Accel Entertainment shares are held by institutional investors. 54.3% of Red Rock Resorts shares are held by insiders. Comparatively, 14.5% of Accel Entertainment shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Earnings and Valuation
This table compares Red Rock 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 | |
| Red Rock Resorts | $2.01 billion | 3.39 | $188.07 million | $3.11 | 20.88 |
| Accel Entertainment | $1.33 billion | 0.75 | $51.47 million | $0.60 | 20.46 |
Red Rock Resorts has higher revenue and earnings than Accel Entertainment. Accel Entertainment is trading at a lower price-to-earnings ratio than Red Rock Resorts, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Red Rock Resorts has a beta of 1.35, meaning that its share price is 35% more volatile than the S&P 500. Comparatively, Accel Entertainment has a beta of 1, meaning that its share price has a similar volatility profile to the S&P 500.
Summary
Red Rock Resorts beats Accel Entertainment on 11 of the 14 factors compared between the two stocks.
About Red Rock Resorts
Red Rock Resorts, Inc., through its interest in Station Casinos LLC, develops and operates casino and entertainment properties in the United States. The company owns and operates gaming and entertainment facilities, including Durango Casino & Resort and smaller casinos in the Las Vegas regional market. The company was formerly known as Station Casinos Corp. and changed its name to Red Rock Resorts, Inc. in January 2016. Red Rock Resorts, Inc. was founded in 1976 and is based in Las Vegas, Nevada.
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.
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