GEN Restaurant Group (NASDAQ:GENK – Get Free Report) and Xponential Fitness (NYSE:XPOF – Get Free Report) are both small-cap consumer discretionary companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, valuation, risk, dividends, analyst recommendations, institutional ownership and earnings.
Insider & Institutional Ownership
10.2% of GEN Restaurant Group shares are held by institutional investors. Comparatively, 58.6% of Xponential Fitness shares are held by institutional investors. 59.1% of GEN Restaurant Group shares are held by insiders. Comparatively, 24.1% of Xponential Fitness shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Volatility and Risk
GEN Restaurant Group has a beta of 0.94, suggesting that its stock price is 6% less volatile than the S&P 500. Comparatively, Xponential Fitness has a beta of 1.07, suggesting that its stock price is 7% more volatile than the S&P 500.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| GEN Restaurant Group | 1 | 2 | 1 | 0 | 2.00 |
| Xponential Fitness | 1 | 10 | 1 | 0 | 2.00 |
GEN Restaurant Group presently has a consensus target price of $3.00, suggesting a potential upside of 80.72%. Xponential Fitness has a consensus target price of $6.94, suggesting a potential upside of 81.37%. Given Xponential Fitness’ higher probable upside, analysts plainly believe Xponential Fitness is more favorable than GEN Restaurant Group.
Earnings and Valuation
This table compares GEN Restaurant Group and Xponential Fitness”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 | $212.54 million | 0.26 | -$3.03 million | ($0.83) | -2.00 |
| Xponential Fitness | $314.88 million | 0.60 | -$33.79 million | ($1.47) | -2.60 |
GEN Restaurant Group has higher earnings, but lower revenue than Xponential Fitness. Xponential Fitness 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.
Profitability
This table compares GEN Restaurant Group and Xponential Fitness’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| GEN Restaurant Group | -2.09% | -7.76% | -0.77% |
| Xponential Fitness | -13.64% | -3.40% | -0.66% |
Summary
Xponential Fitness beats GEN Restaurant Group on 7 of the 12 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 Xponential Fitness
Xponential Fitness, Inc., through its subsidiaries, operates as a boutique fitness franchisor in North America. It offers pilates, indoor cycling, barre, stretching, rowing, dancing, boxing, running, functional training, and yoga services under the Club Pilates, Pure Barre, CycleBar, StretchLab, Row House, YogaSix, Rumble, AKT, Stride, and BFT brands. Xponential Fitness, Inc. was founded in 2017 and is headquartered in Irvine, California.
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