WallStSmart

Accel Entertainment Inc (ACEL)vsSGHC Limited (SGHC)

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Smart Verdict

WallStSmart Research — data-driven comparison

SGHC Limited generates 75% more annual revenue ($2.43B vs $1.39B). SGHC leads profitability with a 15.1% profit margin vs 4.1%. SGHC trades at a lower P/E of 14.6x. SGHC earns a higher WallStSmart Score of 60/100 (C+).

ACEL

Buy

56

out of 100

Grade: C

Growth: 8.0Profit: 6.0Value: 7.0Quality: 6.0
Piotroski: 4/9Altman Z: 2.15

SGHC

Buy

60

out of 100

Grade: C+

Growth: 8.7Profit: 9.5Value: 5.0Quality: 8.0
Piotroski: 4/9Altman Z: 4.57
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ACELUndervalued (+22.9%)

Margin of Safety

+22.9%

Fair Value

$14.40

Current Price

$11.09

$3.31 discount

UndervaluedFair: $14.40Overvalued
SGHCSignificantly Overvalued (-46.9%)

Margin of Safety

-46.9%

Fair Value

$7.30

Current Price

$10.51

$3.21 premium

UndervaluedFair: $7.30Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ACEL2 strengths · Avg: 9.0/10
EPS GrowthGrowth
87.5%10/10

Earnings expanding 87.5% YoY

P/E RatioValuation
16.2x8/10

Attractively priced relative to earnings

SGHC6 strengths · Avg: 8.8/10
Return on EquityProfitability
31.8%10/10

Every $100 of equity generates 32 in profit

Altman Z-ScoreHealth
4.5710/10

Safe zone — low bankruptcy risk

Debt/EquityHealth
0.139/10

Conservative balance sheet, low leverage

P/E RatioValuation
14.6x8/10

Attractively priced relative to earnings

Operating MarginProfitability
25.2%8/10

Strong operational efficiency at 25.2%

Revenue GrowthGrowth
18.1%8/10

18.1% revenue growth

Areas to Watch

ACEL3 concerns · Avg: 2.3/10
Market CapQuality
$885.55M3/10

Smaller company, higher risk/reward

Profit MarginProfitability
4.1%3/10

4.1% margin — thin

Debt/EquityHealth
2.021/10

Elevated debt levels

SGHC0 concerns · Avg: 0/10

No major concerns identified

Comparative Analysis Report

WallStSmart Research

Bull Case : ACEL

The strongest argument for ACEL centers on EPS Growth, P/E Ratio.

Bull Case : SGHC

The strongest argument for SGHC centers on Return on Equity, Altman Z-Score, Debt/Equity. Profitability is solid with margins at 15.1% and operating margin at 25.2%. Revenue growth of 18.1% demonstrates continued momentum.

Bear Case : ACEL

The primary concerns for ACEL are Market Cap, Profit Margin, Debt/Equity. Debt-to-equity of 2.02 is elevated, increasing financial risk. Thin 4.1% margins leave little buffer for downturns.

Bear Case : SGHC

No major red flags identified for SGHC, but monitor valuation.

Key Dynamics to Monitor

ACEL profiles as a value stock while SGHC is a growth play — different risk/reward profiles.

SGHC carries more volatility with a beta of 1.12 — expect wider price swings.

SGHC is growing revenue faster at 18.1% — sustainability is the question.

SGHC generates stronger free cash flow (164M), providing more financial flexibility.

Bottom Line

SGHC scores higher overall (60/100 vs 56/100), backed by strong 15.1% margins and 18.1% revenue growth. ACEL offers better value entry with a 22.9% margin of safety. Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Accel Entertainment Inc

CONSUMER CYCLICAL · GAMBLING · USA

Accel Entertainment, Inc., is a distributed games operator in the United States. The company is headquartered in Burr Ridge, Illinois.

SGHC Limited

CONSUMER CYCLICAL · GAMBLING · USA

Super Group (SGHC) Limited is an online sports betting and gaming operator. The company is headquartered in Saint Peter Port, Guernsey.

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