Analyzing GEN Restaurant Group (NASDAQ:GENK) & Good Times Restaurants (NASDAQ:GTIM)

Good Times Restaurants (NASDAQ:GTIM) and GEN Restaurant Group (NASDAQ:GENK) are both small-cap retail/wholesale companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, dividends, risk and profitability.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Good Times Restaurants	1.60%	7.11%	2.62%
GEN Restaurant Group	0.39%	1.83%	0.37%

Valuation and Earnings

This table compares Good Times Restaurants and GEN Restaurant Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Good Times Restaurants	$145.49 million	0.14	$1.61 million	$0.22	9.01
GEN Restaurant Group	$208.38 million	0.67	$8.41 million	$0.14	30.00

GEN Restaurant Group has higher revenue and earnings than Good Times Restaurants. Good Times Restaurants 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.

Institutional and Insider Ownership

12.1% of Good Times Restaurants shares are owned by institutional investors. Comparatively, 10.2% of GEN Restaurant Group shares are owned by institutional investors. 26.3% of Good Times Restaurants shares are owned by insiders. Comparatively, 61.1% of GEN Restaurant Group shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings and price targets for Good Times Restaurants and GEN Restaurant Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Good Times Restaurants	0	0	0	0	0.00
GEN Restaurant Group	0	0	3	0	3.00

GEN Restaurant Group has a consensus target price of $11.63, suggesting a potential upside of 176.79%. Given GEN Restaurant Group’s stronger consensus rating and higher probable upside, analysts clearly believe GEN Restaurant Group is more favorable than Good Times Restaurants.

Risk & Volatility

Good Times Restaurants has a beta of 1.52, meaning that its stock price is 52% more volatile than the S&P 500. Comparatively, GEN Restaurant Group has a beta of 1.6, meaning that its stock price is 60% more volatile than the S&P 500.

Summary

GEN Restaurant Group beats Good Times Restaurants on 9 of the 14 factors compared between the two stocks.

About Good Times Restaurants

Good Times Restaurants Inc., through its subsidiaries, engages in the restaurant business in the United States. It operates and franchises Good Times Burgers & Frozen Custard, an upscale quick-service drive-through dining restaurant; and owns, operates, franchises, and licenses Bad Daddy's Burger Bar, a full-service upscale casual dining restaurant. The company was incorporated in 1987 and is based in Golden, Colorado.

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.