Starbucks (NASDAQ:SBUX – Get Free Report) and GEN Restaurant Group (NASDAQ:GENK – Get Free Report) are both retail/wholesale companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, dividends, institutional ownership, earnings, valuation, risk and analyst recommendations.
Risk and Volatility
Starbucks has a beta of 1, meaning that its stock price has a similar volatility profile to the S&P 500.Comparatively, GEN Restaurant Group has a beta of 1.44, meaning that its stock price is 44% more volatile than the S&P 500.
Earnings and Valuation
This table compares Starbucks and GEN Restaurant Group”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Starbucks | $36.18 billion | 2.59 | $3.76 billion | $2.32 | 35.50 |
| GEN Restaurant Group | $208.38 million | 0.50 | $590,000.00 | ($0.14) | -22.71 |
Starbucks has higher revenue and earnings than GEN Restaurant Group. GEN Restaurant Group is trading at a lower price-to-earnings ratio than Starbucks, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
72.3% of Starbucks shares are held by institutional investors. Comparatively, 10.2% of GEN Restaurant Group shares are held by institutional investors. 0.1% of Starbucks shares are held by insiders. Comparatively, 59.1% of GEN Restaurant Group shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Profitability
This table compares Starbucks and GEN Restaurant Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Starbucks | 7.18% | -36.23% | 8.51% |
| GEN Restaurant Group | -0.34% | 0.78% | 0.14% |
Analyst Recommendations
This is a breakdown of current ratings and target prices for Starbucks and GEN Restaurant Group, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Starbucks | 2 | 8 | 15 | 1 | 2.58 |
| GEN Restaurant Group | 0 | 0 | 1 | 0 | 3.00 |
Starbucks currently has a consensus target price of $104.40, indicating a potential upside of 26.76%. GEN Restaurant Group has a consensus target price of $8.00, indicating a potential upside of 151.57%. Given GEN Restaurant Group’s stronger consensus rating and higher possible upside, analysts plainly believe GEN Restaurant Group is more favorable than Starbucks.
Summary
Starbucks beats GEN Restaurant Group on 10 of the 15 factors compared between the two stocks.
About Starbucks
Starbucks Corporation, together with its subsidiaries, operates as a roaster, marketer, and retailer of coffee worldwide. The company operates through three segments: North America, International, and Channel Development. Its stores offer coffee and tea beverages, roasted whole beans and ground coffees, single serve products, and ready-to-drink beverages; and various food products, such as pastries, breakfast sandwiches, and lunch items. The company also licenses its trademarks through licensed stores, and grocery and foodservice accounts. The company offers its products under the Starbucks Coffee, Teavana, Seattle’s Best Coffee, Ethos, Starbucks Reserve, and Princi brands. Starbucks Corporation was founded in 1971 and is based in Seattle, Washington.
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.
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