Contrasting GEN Restaurant Group (NASDAQ:GENK) and ONE Group Hospitality (NASDAQ:STKS)

GEN Restaurant Group (NASDAQ:GENK) and ONE Group Hospitality (NASDAQ:STKS) 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 analyst recommendations, valuation, institutional ownership, risk, profitability, dividends and earnings.

Risk and Volatility

GEN Restaurant Group has a beta of 2.3, suggesting that its share price is 130% more volatile than the S&P 500. Comparatively, ONE Group Hospitality has a beta of 2.41, suggesting that its share price is 141% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for GEN Restaurant Group and ONE Group Hospitality, 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
ONE Group Hospitality	0	1	2	0	2.67

GEN Restaurant Group currently has a consensus target price of $13.17, suggesting a potential upside of 36.44%. ONE Group Hospitality has a consensus target price of $7.67, suggesting a potential upside of 98.11%. Given ONE Group Hospitality’s higher possible upside, analysts plainly believe ONE Group Hospitality is more favorable than GEN Restaurant Group.

Earnings & Valuation

This table compares GEN Restaurant Group and ONE Group Hospitality’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	1.60	$8.41 million	$0.18	53.61
ONE Group Hospitality	$332.77 million	0.36	$4.72 million	N/A	N/A

GEN Restaurant Group has higher earnings, but lower revenue than ONE Group Hospitality.

Profitability

This table compares GEN Restaurant Group and ONE Group Hospitality’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%
ONE Group Hospitality	-1.76%	14.71%	2.06%

Insider and Institutional Ownership

10.2% of GEN Restaurant Group shares are held by institutional investors. Comparatively, 29.1% of ONE Group Hospitality shares are held by institutional investors. 19.7% of ONE Group Hospitality shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

ONE Group Hospitality beats GEN Restaurant Group on 7 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 ONE Group Hospitality

The ONE Group Hospitality, Inc., a restaurant company, develops, owns, operates, manages, and licenses restaurants and lounges worldwide. It operates through STK, Kona Grill, and ONE Hospitality segments. The company also provides turn-key food and beverage services for hospitality venues, including hotels, casinos, and other locations. Its hospitality food and beverage solutions include developing, managing, and operating restaurants, bars, rooftops, pools, banqueting, catering, private dining rooms, room service, and mini bars; and offers hospitality advisory and consulting services. The company operates restaurants primarily under the STK and Kona Grill brands. The ONE Group Hospitality, Inc. was founded in 2004 and is based in Denver, Colorado.