Head-To-Head Contrast: GEN Restaurant Group (NASDAQ:GENK) versus BT Brands (NASDAQ:BTBD)

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

Institutional & Insider Ownership

10.2% of GEN Restaurant Group shares are held by institutional investors. Comparatively, 0.4% of BT Brands shares are held by institutional investors. 18.0% of BT Brands 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.

Profitability

This table compares GEN Restaurant Group and BT Brands’ 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%
BT Brands	-7.91%	-12.45%	-7.86%

Volatility and Risk

GEN Restaurant Group has a beta of 2.31, suggesting that its stock price is 131% more volatile than the S&P 500. Comparatively, BT Brands has a beta of 0.52, suggesting that its stock price is 48% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and target prices for GEN Restaurant Group and BT Brands, 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
BT Brands	0	0	0	0	N/A

GEN Restaurant Group presently has a consensus price target of $13.17, suggesting a potential upside of 57.68%. Given GEN Restaurant Group’s higher possible upside, research analysts plainly believe GEN Restaurant Group is more favorable than BT Brands.

Valuation and Earnings

This table compares GEN Restaurant Group and BT Brands”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	1.39	$8.41 million	$0.18	46.39
BT Brands	$14.31 million	0.74	-$890,000.00	($0.21)	-8.10

GEN Restaurant Group has higher revenue and earnings than BT Brands. BT Brands 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.

Summary

GEN Restaurant Group beats BT Brands on 12 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 BT Brands

BT Brands, Inc. owns and operates fast-food restaurants in the north central region of United States. The company operates Burger Time restaurants located in Minnesota, North Dakota, and South Dakota; and a Dairy Queen franchise in Ham Lake, Minnesota. Its Burger Time restaurants provide various burgers and other food products, such as chicken sandwiches, pulled pork sandwiches, chicken chunks, side dishes, and soft drinks; and Dairy Queen restaurant offers burgers, chicken, sides, ice cream and other desserts, and various beverages. The company was founded in 1987 and is based in West Fargo, North Dakota.