Contrasting GEN Restaurant Group (NASDAQ:GENK) & Biglari (NYSE:BH)

Biglari (NYSE:BH) and GEN Restaurant Group (NASDAQ:GENK) are both small-cap retail/wholesale companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, analyst recommendations, risk, earnings, profitability, institutional ownership and valuation.

Insider & Institutional Ownership

74.3% of Biglari shares are held by institutional investors. Comparatively, 10.2% of GEN Restaurant Group shares are held by institutional investors. 71.4% of Biglari shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Risk & Volatility

Biglari has a beta of 0.74, suggesting that its share price is 26% less volatile than the S&P 500. Comparatively, GEN Restaurant Group has a beta of 2.3, suggesting that its share price is 130% more volatile than the S&P 500.

Earnings and Valuation

This table compares Biglari and GEN Restaurant Group’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Biglari	$365.32 million	1.17	$54.95 million	$44.70	4.21
GEN Restaurant Group	$181.01 million	1.62	$8.41 million	$0.18	50.28

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

Analyst Ratings

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

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

GEN Restaurant Group has a consensus target price of $13.17, indicating a potential upside of 45.49%. Given GEN Restaurant Group’s higher possible upside, analysts clearly believe GEN Restaurant Group is more favorable than Biglari.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Biglari	3.47%	2.11%	1.46%
GEN Restaurant Group	0.56%	2.76%	0.55%

Summary

Biglari beats GEN Restaurant Group on 7 of the 13 factors compared between the two stocks.

About Biglari

Biglari Holdings Inc., through its subsidiaries, primarily operates and franchises restaurants in the United States. It owns, operates, and franchises restaurants under the Steak n Shake and Western Sizzlin names. The company also engages in underwriting commercial trucking insurance; selling physical damage and non-trucking liability insurance to truckers; and providing property and casualty insurance. In addition, it operates oil and natural gas properties in the Gulf of Mexico; and publishes and sells magazines under the MAXIM brand name. Further, it licenses media products and services; and engages in the investment activities. The company was formerly known as The Steak n Shake Company and changed its name to Biglari Holdings Inc. in April 2010. Biglari Holdings Inc. was founded in 1934 and is based in San Antonio, Texas.

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.