Financial Comparison: GEN Restaurant Group (NASDAQ:GENK) vs. Texas Roadhouse (NASDAQ:TXRH)

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

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Texas Roadhouse	$5.37 billion	2.06	$304.88 million	$6.47	25.75
GEN Restaurant Group	$208.38 million	0.88	$8.41 million	$0.14	39.43

Texas Roadhouse has higher revenue and earnings than GEN Restaurant Group. Texas Roadhouse is trading at a lower price-to-earnings ratio than GEN Restaurant Group, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Texas Roadhouse has a beta of 1, meaning that its share price has a similar volatility profile to the S&P 500.Comparatively, GEN Restaurant Group has a beta of 1.89, meaning that its share price is 89% more volatile than the S&P 500.

Insider & Institutional Ownership

94.8% of Texas Roadhouse shares are owned by institutional investors. Comparatively, 10.2% of GEN Restaurant Group shares are owned by institutional investors. 0.5% of Texas Roadhouse shares are owned by company insiders. Comparatively, 61.1% of GEN Restaurant Group shares are owned 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.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Texas Roadhouse and GEN Restaurant Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Texas Roadhouse	0	11	12	0	2.52
GEN Restaurant Group	0	0	3	0	3.00

Texas Roadhouse presently has a consensus target price of $193.36, indicating a potential upside of 16.04%. GEN Restaurant Group has a consensus target price of $11.63, indicating a potential upside of 110.60%. Given GEN Restaurant Group’s stronger consensus rating and higher possible upside, analysts plainly believe GEN Restaurant Group is more favorable than Texas Roadhouse.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Texas Roadhouse	8.07%	34.02%	15.11%
GEN Restaurant Group	0.39%	1.83%	0.37%

Summary

Texas Roadhouse beats GEN Restaurant Group on 9 of the 14 factors compared between the two stocks.

About Texas Roadhouse

Texas Roadhouse, Inc., together with its subsidiaries, operates casual dining restaurants in the United States and internationally. It also operates and franchises restaurants under the Texas Roadhouse, Bubba's 33, and Jaggers names in 49 states and ten internationally. Texas Roadhouse, Inc. was founded in 1993 and is based in Louisville, Kentucky.

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.