Head-To-Head Survey: GEN Restaurant Group (NASDAQ:GENK) vs. BT Brands (NASDAQ:BTBD)

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

Analyst Recommendations

This is a breakdown of current recommendations and price targets for BT Brands and GEN Restaurant Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BT Brands	0	0	0	0	N/A
GEN Restaurant Group	0	0	3	0	3.00

GEN Restaurant Group has a consensus price target of $13.17, suggesting a potential upside of 61.46%. Given GEN Restaurant Group’s higher probable upside, analysts plainly believe GEN Restaurant Group is more favorable than BT Brands.

Institutional and Insider Ownership

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

Risk and Volatility

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
BT Brands	-7.91%	-12.45%	-7.86%
GEN Restaurant Group	0.56%	2.76%	0.55%

Earnings and Valuation

This table compares BT Brands and GEN Restaurant Group”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BT Brands	$14.31 million	0.72	-$890,000.00	($0.21)	-7.86
GEN Restaurant Group	$195.29 million	1.35	$8.41 million	$0.18	45.31

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 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.

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.