GEN Restaurant Group (NASDAQ:GENK – Get Free Report) and CAVA Group (NYSE:CAVA – Get Free Report) are both retail/wholesale companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, profitability, dividends, risk, valuation, analyst recommendations and institutional ownership.
Profitability
This table compares GEN Restaurant Group and CAVA Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| GEN Restaurant Group | 0.56% | 2.76% | 0.55% |
| CAVA Group | 5.04% | 7.37% | 4.25% |
Insider and Institutional Ownership
10.2% of GEN Restaurant Group shares are held by institutional investors. Comparatively, 73.2% of CAVA Group shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Risk & Volatility
Analyst Ratings
This is a summary of recent ratings and price targets for GEN Restaurant Group and CAVA Group, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| GEN Restaurant Group | 0 | 0 | 3 | 0 | 3.00 |
| CAVA Group | 0 | 8 | 8 | 0 | 2.50 |
GEN Restaurant Group presently has a consensus target price of $13.17, suggesting a potential upside of 63.16%. CAVA Group has a consensus target price of $115.64, suggesting a potential downside of 5.90%. Given GEN Restaurant Group’s stronger consensus rating and higher possible upside, equities analysts clearly believe GEN Restaurant Group is more favorable than CAVA Group.
Earnings & Valuation
This table compares GEN Restaurant Group and CAVA Group”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| GEN Restaurant Group | $195.29 million | 1.35 | $8.41 million | $0.18 | 45.22 |
| CAVA Group | $845.22 million | 16.51 | $13.28 million | $0.41 | 298.41 |
CAVA Group has higher revenue and earnings than GEN Restaurant Group. GEN Restaurant Group is trading at a lower price-to-earnings ratio than CAVA Group, indicating that it is currently the more affordable of the two stocks.
Summary
CAVA Group beats GEN Restaurant Group on 11 of the 13 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 CAVA Group
CAVA Group, Inc. owns and operates a chain of restaurants under the CAVA brand in the United States. The company also offers dips, spreads, and dressings through grocery stores. In addition, the company provides online and mobile ordering platforms. Cava Group, Inc. was founded in 2006 and is headquartered in Washington, the District of Columbia.
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