Planet Fitness (NYSE:PLNT) & GEN Restaurant Group (NASDAQ:GENK) Head-To-Head Review

GEN Restaurant Group (NASDAQ:GENK) and Planet Fitness (NYSE:PLNT) are both consumer discretionary companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, institutional ownership, earnings, dividends, valuation, profitability and analyst recommendations.

Earnings and Valuation

This table compares GEN Restaurant Group and Planet Fitness”s gross 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	0.23	-$3.03 million	($0.83)	-1.82
Planet Fitness	$1.32 billion	2.99	$219.10 million	$2.95	17.74

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

Profitability

This table compares GEN Restaurant Group and Planet 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%
Planet Fitness	16.88%	-59.46%	8.60%

Analyst Ratings

This is a breakdown of recent recommendations for GEN Restaurant Group and Planet Fitness, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GEN Restaurant Group	1	2	1	0	2.00
Planet Fitness	1	9	11	1	2.55

GEN Restaurant Group currently has a consensus target price of $3.00, suggesting a potential upside of 98.68%. Planet Fitness has a consensus target price of $69.34, suggesting a potential upside of 32.47%. Given GEN Restaurant Group’s higher possible upside, equities analysts plainly believe GEN Restaurant Group is more favorable than Planet Fitness.

Insider and Institutional Ownership

10.2% of GEN Restaurant Group shares are held by institutional investors. Comparatively, 95.5% of Planet Fitness shares are held by institutional investors. 59.1% of GEN Restaurant Group shares are held by company insiders. Comparatively, 0.9% of Planet Fitness shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Risk & Volatility

GEN Restaurant Group has a beta of 0.98, meaning that its stock price is 2% less volatile than the S&P 500. Comparatively, Planet Fitness has a beta of 1.05, meaning that its stock price is 5% more volatile than the S&P 500.

Summary

Planet Fitness beats GEN Restaurant Group on 12 of the 15 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 Planet Fitness

Planet Fitness, Inc., together with its subsidiaries, franchises and operates fitness centers under the Planet Fitness brand. The company operates through three segments: Franchise, Corporate-Owned Stores, and Equipment. The company is involved in franchising business in the United States, Puerto Rico, Canada, Panama, Mexico, and Australia. It engages in the sale of fitness equipment to franchisee-owned stores in the United States, Canada, and Mexico. In addition, the company operates corporate-owned stores in the United States and Canada. Planet Fitness, Inc. was founded in 1992 and is headquartered in Hampton, New Hampshire.