GEN Restaurant Group (NASDAQ:GENK – Get Free Report) and Denny’s (NASDAQ:DENN – Get Free Report) are both small-cap retail/wholesale companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, valuation, risk, institutional ownership, profitability and dividends.
Valuation and Earnings
This table compares GEN Restaurant Group and Denny’s’ top-line revenue, earnings per share (EPS) and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
GEN Restaurant Group | $181.01 million | 1.82 | $8.41 million | N/A | N/A |
Denny’s | $456.43 million | 0.92 | $19.94 million | $0.43 | 18.81 |
Denny’s has higher revenue and earnings than GEN Restaurant Group.
Analyst Recommendations
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
GEN Restaurant Group | 0 | 0 | 4 | 0 | 3.00 |
Denny’s | 0 | 3 | 3 | 0 | 2.50 |
GEN Restaurant Group currently has a consensus price target of $14.33, suggesting a potential upside of 40.94%. Denny’s has a consensus price target of $11.42, suggesting a potential upside of 41.12%. Given Denny’s’ higher possible upside, analysts plainly believe Denny’s is more favorable than GEN Restaurant Group.
Insider and Institutional Ownership
10.2% of GEN Restaurant Group shares are held by institutional investors. Comparatively, 85.1% of Denny’s shares are held by institutional investors. 4.2% of Denny’s shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Profitability
This table compares GEN Restaurant Group and Denny’s’ net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
GEN Restaurant Group | 2.46% | 20.27% | 2.84% |
Denny’s | 5.27% | -63.27% | 6.66% |
Summary
Denny’s beats GEN Restaurant Group on 7 of the 11 factors compared between the two stocks.
About GEN Restaurant Group
GEN Restaurant Group, Inc. operates restaurants in California, Arizona, Hawaii, Nevada, Texas, New York, and Florida. It offers meats, poultry, and seafood. The company was founded in 2011 and is based in Cerritos, California.
About Denny’s
Denny's Corporation, through its subsidiaries, owns and operates franchised full-service restaurant chains under the Denny's and Keke's Breakfast Cafe brands in the United States and internationally. The company was formerly known as Advantica Restaurant Group, Inc. and changed its name to Denny's Corporation in July 2002. Denny's Corporation was founded in 1953 and is headquartered in Spartanburg, South Carolina.
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