Contrasting GEN Restaurant Group (NASDAQ:GENK) & Arc Group (OTCMKTS:RLLY)

GEN Restaurant Group (NASDAQ:GENK) and Arc Group (OTCMKTS:RLLY) are both retail/wholesale companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, risk, earnings, dividends, analyst recommendations, institutional ownership and valuation.

Profitability

This table compares GEN Restaurant Group and Arc Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
GEN Restaurant Group	-0.34%	0.78%	0.14%
Arc Group	N/A	N/A	N/A

Valuation & Earnings

This table compares GEN Restaurant Group and Arc Group”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GEN Restaurant Group	$208.38 million	0.45	$590,000.00	($0.14)	-20.43
Arc Group	N/A	N/A	N/A	N/A	N/A

GEN Restaurant Group has higher revenue and earnings than Arc Group.

Institutional & Insider Ownership

10.2% of GEN Restaurant Group shares are held by institutional investors. 59.1% of GEN Restaurant Group shares are held by company insiders. Comparatively, 12.4% of Arc Group shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and target prices for GEN Restaurant Group and Arc Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GEN Restaurant Group	1	0	1	0	2.00
Arc Group	0	0	0	0	0.00

GEN Restaurant Group presently has a consensus price target of $8.00, suggesting a potential upside of 179.72%. Given GEN Restaurant Group’s stronger consensus rating and higher possible upside, research analysts plainly believe GEN Restaurant Group is more favorable than Arc Group.

Summary

GEN Restaurant Group beats Arc Group on 8 of the 9 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 Arc Group

ARC Group, Inc. engages in the operation of Dick’s Wings brand of restaurants. It offers its traditional and boneless chicken wings, hog wings, and duck wings spun in its signature sauces and seasonings. The firm oprates through the following segments; Company-Owned Restaurants and Franchise Operations. The Company-Owned Restaurants are casual dining restaurants. The Franchise Operations segment offers franchises for the Dick’s Wings brand. It also offers craft beers under the name Dick’s Craft Beers. The company was founded in April 2000 and is headquartered in Jacksonville, FL.