Reviewing GEN Restaurant Group (NASDAQ:GENK) & Texas Roadhouse (NASDAQ:TXRH)

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

Profitability

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

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

Volatility & Risk

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

Valuation & Earnings

This table compares GEN Restaurant Group and Texas Roadhouse”s gross 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	0.87	$8.41 million	$0.14	39.07
Texas Roadhouse	$5.37 billion	2.13	$304.88 million	$6.47	26.62

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.

Insider & Institutional Ownership

10.2% of GEN Restaurant Group shares are held by institutional investors. Comparatively, 94.8% of Texas Roadhouse shares are held by institutional investors. 61.1% of GEN Restaurant Group shares are held by insiders. Comparatively, 0.5% of Texas Roadhouse shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and price targets for GEN Restaurant Group and Texas Roadhouse, as provided by MarketBeat.com.

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

GEN Restaurant Group presently has a consensus price target of $11.63, indicating a potential upside of 112.52%. Texas Roadhouse has a consensus price target of $193.36, indicating a potential upside of 12.28%. Given GEN Restaurant Group’s stronger consensus rating and higher probable upside, research analysts clearly believe GEN Restaurant Group is more favorable than Texas Roadhouse.

Summary

Texas Roadhouse beats GEN Restaurant Group on 9 of the 14 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 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.