CAVA Group (NYSE:CAVA) versus GEN Restaurant Group (NASDAQ:GENK) Financial Contrast

GEN Restaurant Group (NASDAQ:GENK) and CAVA Group (NYSE:CAVA) are both retail/wholesale companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, institutional ownership, earnings, valuation, profitability, analyst recommendations and risk.

Volatility & Risk

GEN Restaurant Group has a beta of 2.31, meaning that its stock price is 131% more volatile than the S&P 500. Comparatively, CAVA Group has a beta of 3.33, meaning that its stock price is 233% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
GEN Restaurant Group	0.56%	2.76%	0.55%
CAVA Group	5.04%	7.37%	4.25%

Analyst Recommendations

This is a summary of current ratings and target prices for GEN Restaurant Group and CAVA Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GEN Restaurant Group	0	0	3	0	3.00
CAVA Group	0	8	8	0	2.50

GEN Restaurant Group presently has a consensus price target of $13.17, suggesting a potential upside of 64.38%. CAVA Group has a consensus price target of $115.64, suggesting a potential downside of 12.32%. Given GEN Restaurant Group’s stronger consensus rating and higher possible upside, equities research analysts clearly believe GEN Restaurant Group is more favorable than CAVA Group.

Earnings and Valuation

This table compares GEN Restaurant Group and CAVA Group”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GEN Restaurant Group	$195.29 million	1.33	$8.41 million	$0.18	44.50
CAVA Group	$845.22 million	17.79	$13.28 million	$0.41	321.68

CAVA Group has higher revenue and earnings than GEN Restaurant Group. GEN Restaurant Group is trading at a lower price-to-earnings ratio than CAVA Group, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

10.2% of GEN Restaurant Group shares are owned by institutional investors. Comparatively, 73.2% of CAVA Group shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

CAVA Group beats GEN Restaurant Group on 11 of the 13 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 CAVA Group

CAVA Group, Inc. owns and operates a chain of restaurants under the CAVA brand in the United States. The company also offers dips, spreads, and dressings through grocery stores. In addition, the company provides online and mobile ordering platforms. Cava Group, Inc. was founded in 2006 and is headquartered in Washington, the District of Columbia.