Ark Restaurants (NASDAQ:ARKR) vs. GEN Restaurant Group (NASDAQ:GENK) Critical Contrast

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

Profitability

This table compares GEN Restaurant Group and Ark Restaurants’ 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%
Ark Restaurants	-5.31%	0.14%	0.04%

Volatility and Risk

GEN Restaurant Group has a beta of 1.93, meaning that its share price is 93% more volatile than the S&P 500. Comparatively, Ark Restaurants has a beta of 0.98, meaning that its share price is 2% less volatile than the S&P 500.

Valuation and Earnings

This table compares GEN Restaurant Group and Ark Restaurants”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	$198.83 million	1.19	$8.41 million	$0.17	42.41
Ark Restaurants	$184.54 million	0.21	-$5.93 million	($2.72)	-3.95

GEN Restaurant Group has higher revenue and earnings than Ark Restaurants. Ark 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

10.2% of GEN Restaurant Group shares are owned by institutional investors. Comparatively, 32.0% of Ark Restaurants shares are owned by institutional investors. 61.1% of GEN Restaurant Group shares are owned by company insiders. Comparatively, 37.2% of Ark Restaurants shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings for GEN Restaurant Group and Ark Restaurants, 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
Ark Restaurants	0	0	0	0	0.00

GEN Restaurant Group presently has a consensus price target of $13.17, indicating a potential upside of 82.62%. Given GEN Restaurant Group’s stronger consensus rating and higher possible upside, analysts clearly believe GEN Restaurant Group is more favorable than Ark Restaurants.

Summary

GEN Restaurant Group beats Ark Restaurants on 13 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 Ark Restaurants

Ark Restaurants Corp., through its subsidiaries, owns and operates restaurants and bars in the United States. It operates restaurants in New York City; Washington, D.C.; Las Vegas, Nevada; Atlantic City, New Jersey; Florida; and Alabama, as well as fast food concepts and catering operations. The company was incorporated in 1983 and is based in New York, New York.