Reviewing GEN Restaurant Group (NASDAQ:GENK) & Arc Group (OTCMKTS:RLLY)

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

Earnings & Valuation

This table compares Arc Group and GEN Restaurant Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Arc Group	N/A	N/A	N/A	N/A	N/A
GEN Restaurant Group	$208.38 million	0.45	$590,000.00	($0.14)	-20.43

GEN Restaurant Group has higher revenue and earnings than Arc Group.

Analyst Recommendations

This is a summary of recent ratings and price targets for Arc Group and GEN Restaurant Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Arc Group	0	0	0	0	0.00
GEN Restaurant Group	1	0	1	0	2.00

GEN Restaurant Group has a consensus price target of $8.00, suggesting a potential upside of 179.72%. Given GEN Restaurant Group’s stronger consensus rating and higher probable upside, analysts plainly believe GEN Restaurant Group is more favorable than Arc Group.

Profitability

This table compares Arc Group and GEN Restaurant Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Arc Group	N/A	N/A	N/A
GEN Restaurant Group	-0.34%	0.78%	0.14%

Insider & Institutional Ownership

10.2% of GEN Restaurant Group shares are owned by institutional investors. 12.4% of Arc Group shares are owned by company insiders. Comparatively, 59.1% of GEN Restaurant Group shares are owned 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

GEN Restaurant Group beats Arc Group on 8 of the 9 factors compared between the two stocks.

About Arc Group

ARC Group, Inc. engages in the operation of Dick’s Wings brand of restaurants. It offers its traditional and boneless chicken wings, hog wings, and duck wings spun in its signature sauces and seasonings. The firm oprates through the following segments; Company-Owned Restaurants and Franchise Operations. The Company-Owned Restaurants are casual dining restaurants. The Franchise Operations segment offers franchises for the Dick’s Wings brand. It also offers craft beers under the name Dick’s Craft Beers. The company was founded in April 2000 and is headquartered in Jacksonville, FL.

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.