Head-To-Head Review: GEN Restaurant Group (NASDAQ:GENK) and Arc Group (OTCMKTS:RLLY)

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

Earnings & Valuation

This table compares GEN Restaurant Group and Arc Group”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	$216.14 million	0.41	$590,000.00	($0.26)	-10.34
Arc Group	N/A	N/A	N/A	N/A	N/A

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

Analyst Ratings

This is a summary of current recommendations for GEN Restaurant Group and Arc Group, as reported by MarketBeat.

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

GEN Restaurant Group presently has a consensus target price of $8.00, suggesting a potential upside of 197.51%. Given GEN Restaurant Group’s stronger consensus rating and higher possible upside, research analysts clearly believe GEN Restaurant Group is more favorable than Arc Group.

Institutional and Insider Ownership

10.2% of GEN Restaurant Group shares are owned by institutional investors. 59.1% of GEN Restaurant Group shares are owned by company insiders. Comparatively, 12.4% of Arc Group shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
GEN Restaurant Group	-0.61%	0.51%	0.09%
Arc Group	N/A	N/A	N/A

Summary

GEN Restaurant Group beats Arc Group on 8 of the 9 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 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.