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 investment? We will contrast the two companies based on the strength of their institutional ownership, risk, analyst recommendations, profitability, dividends, valuation and earnings.
Risk & Volatility
GEN Restaurant Group has a beta of 0.94, meaning that its stock price is 6% less volatile than the S&P 500. Comparatively, Xponential Fitness has a beta of 1.07, meaning that its stock price is 7% more volatile than the S&P 500.
Valuation and Earnings
This table compares GEN Restaurant Group and Xponential Fitness”s top-line revenue, earnings per share (EPS) 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) | -2.01 |
| Xponential Fitness | $288.47 million | 0.64 | -$33.79 million | ($1.47) | -2.54 |
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.
Insider & Institutional Ownership
10.2% of GEN Restaurant Group shares are held by institutional investors. Comparatively, 58.5% 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, large money managers and endowments believe a company will outperform the market over the long term.
Analyst Recommendations
This is a summary of current recommendations for GEN Restaurant Group and Xponential Fitness, as reported by MarketBeat.com.
| 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 price target of $3.00, indicating a potential upside of 79.96%. Xponential Fitness has a consensus price target of $6.50, indicating a potential upside of 73.80%. Given GEN Restaurant Group’s higher possible upside, analysts clearly believe GEN Restaurant Group is more favorable than Xponential Fitness.
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% |
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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