Head-To-Head Comparison: BAB (OTCMKTS:BABB) and GEN Restaurant Group (NASDAQ:GENK)

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

Insider and Institutional Ownership

10.2% of GEN Restaurant Group shares are owned by institutional investors. 33.7% of BAB shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and target prices for GEN Restaurant Group and BAB, 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
BAB	0	0	0	0	N/A

GEN Restaurant Group currently has a consensus price target of $13.17, suggesting a potential upside of 62.15%. Given GEN Restaurant Group’s higher possible upside, equities analysts plainly believe GEN Restaurant Group is more favorable than BAB.

Profitability

This table compares GEN Restaurant Group and BAB’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%
BAB	15.23%	17.45%	12.20%

Earnings & Valuation

This table compares GEN Restaurant Group and BAB’s top-line 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	45.11
BAB	$3.51 million	1.65	$470,000.00	$0.07	11.43

GEN Restaurant Group has higher revenue and earnings than BAB. BAB 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 2.3, meaning that its share price is 130% more volatile than the S&P 500. Comparatively, BAB has a beta of 0.07, meaning that its share price is 93% less volatile than the S&P 500.

Summary

GEN Restaurant Group beats BAB on 8 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 BAB

BAB, Inc. franchises and licenses bagel and muffin retail units under the Big Apple Bagels (BAB), My Favorite Muffin (MFM), and SweetDuet (SD) trade names in the United States. It's BAB franchised brand includes daily baked bagels, flavored cream cheeses, premium coffees, gourmet bagel sandwiches, and other related products; and MFM brand comprises various freshly baked muffins and coffees, as well as units operating as My Favorite Muffin Your All Day Bakery Café features specialty bagel sandwiches and related products. The company's SD brand includes frozen yogurt products. BAB, Inc. was founded in 1993 and is based in Deerfield, Illinois.