Contrasting GEN Restaurant Group (NASDAQ:GENK) & Aramark (NYSE:ARMK)

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

Institutional and Insider Ownership

10.2% of GEN Restaurant Group shares are held by institutional investors. 1.9% of Aramark 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.

Valuation and Earnings

This table compares GEN Restaurant Group and Aramark”s revenue, earnings per share (EPS) 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	45.06
Aramark	$19.95 billion	0.50	$674.11 million	$2.38	15.99

Aramark has higher revenue and earnings than GEN Restaurant Group. Aramark 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 and Volatility

GEN Restaurant Group has a beta of 2.32, meaning that its stock price is 132% more volatile than the S&P 500. Comparatively, Aramark has a beta of 1.62, meaning that its stock price is 62% more volatile than the S&P 500.

Profitability

This table compares GEN Restaurant Group and Aramark’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%
Aramark	1.93%	14.09%	3.21%

Analyst Recommendations

This is a summary of recent ratings for GEN Restaurant Group and Aramark, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GEN Restaurant Group	0	0	3	0	3.00
Aramark	0	2	11	0	2.85

GEN Restaurant Group currently has a consensus price target of $13.17, indicating a potential upside of 62.35%. Aramark has a consensus price target of $37.36, indicating a potential downside of 1.54%. Given GEN Restaurant Group’s stronger consensus rating and higher probable upside, equities research analysts plainly believe GEN Restaurant Group is more favorable than Aramark.

Summary

Aramark beats GEN Restaurant Group on 8 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 Aramark

Aramark provides food and facilities services to education, healthcare, business and industry, sports, leisure, and corrections clients in the United States and internationally. It operates through two segments, Food and Support Services United States, and Food and Support Services International. The company offers food-related managed services, including dining, catering, food service management, and convenience-oriented retail services; non-clinical food and food-related support services, such as patient food and nutrition, retail food, environmental services, and procurement services; and plant operations and maintenance, custodial/housekeeping, energy management, grounds keeping, and capital project management services. It also provides on-site restaurants, catering, convenience stores, and executive dining services; beverage and vending services; and facility management services comprising landscaping, transportation, capital program management, payment services, and other facility consulting services relating to building operations. In addition, the company offers concessions, banquet, and catering services; retail services and merchandise sale, recreational, and lodging services; and facility management services at sports, entertainment, and recreational facilities. Further, it offers correctional food; and operates commissaries, laundry facilities, and property rooms. It primarily serves business and industry, sports, leisure and corrections, education, healthcare, public institutions, manufacturing, transportation, service, and other industries. The company was formerly known as ARAMARK Holdings Corporation. Aramark was founded in 1959 and is based in Philadelphia, Pennsylvania.