GEN Restaurant Group (NASDAQ:GENK – Get Free Report) and Planet Fitness (NYSE:PLNT – Get Free Report) are both consumer discretionary companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, profitability, risk, valuation, dividends and earnings.
Analyst Ratings
This is a breakdown of recent ratings for GEN Restaurant Group and Planet Fitness, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| GEN Restaurant Group | 1 | 2 | 1 | 0 | 2.00 |
| Planet Fitness | 1 | 9 | 11 | 1 | 2.55 |
GEN Restaurant Group presently has a consensus price target of $3.00, indicating a potential upside of 102.02%. Planet Fitness has a consensus price target of $69.55, indicating a potential upside of 27.21%. Given GEN Restaurant Group’s higher probable upside, research analysts plainly believe GEN Restaurant Group is more favorable than Planet Fitness.
Institutional & Insider Ownership
10.2% of GEN Restaurant Group shares are owned by institutional investors. Comparatively, 95.5% of Planet Fitness shares are owned by institutional investors. 59.1% of GEN Restaurant Group shares are owned by company insiders. Comparatively, 0.9% of Planet Fitness shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Risk & Volatility
GEN Restaurant Group has a beta of 0.98, suggesting that its share price is 2% less volatile than the S&P 500. Comparatively, Planet Fitness has a beta of 1.02, suggesting that its share price is 2% more volatile than the S&P 500.
Valuation and Earnings
This table compares GEN Restaurant Group and Planet Fitness”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| GEN Restaurant Group | $209.79 million | 0.23 | -$3.03 million | ($0.83) | -1.79 |
| Planet Fitness | $1.32 billion | 3.12 | $219.10 million | $2.95 | 18.53 |
Planet Fitness has higher revenue and earnings than GEN Restaurant Group. GEN Restaurant Group is trading at a lower price-to-earnings ratio than Planet Fitness, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares GEN Restaurant Group and Planet 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% |
| Planet Fitness | 16.88% | -59.46% | 8.60% |
Summary
Planet Fitness beats GEN Restaurant Group on 12 of the 15 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 Planet Fitness
Planet Fitness, Inc., together with its subsidiaries, franchises and operates fitness centers under the Planet Fitness brand. The company operates through three segments: Franchise, Corporate-Owned Stores, and Equipment. The company is involved in franchising business in the United States, Puerto Rico, Canada, Panama, Mexico, and Australia. It engages in the sale of fitness equipment to franchisee-owned stores in the United States, Canada, and Mexico. In addition, the company operates corporate-owned stores in the United States and Canada. Planet Fitness, Inc. was founded in 1992 and is headquartered in Hampton, New Hampshire.
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