Aramark (NYSE:ARMK) and GEN Restaurant Group (NASDAQ:GENK) Head to Head Contrast
by Tristan Rich · The Markets DailyGEN Restaurant Group (NASDAQ:GENK – Get Free Report) and Aramark (NYSE:ARMK – Get Free Report) are both retail/wholesale companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, analyst recommendations, risk, institutional ownership, dividends, valuation and earnings.
Analyst Recommendations
This is a breakdown of current ratings and price targets for GEN Restaurant Group and Aramark, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| GEN Restaurant Group | 0 | 0 | 3 | 0 | 3.00 |
| Aramark | 0 | 2 | 10 | 0 | 2.83 |
GEN Restaurant Group presently has a consensus price target of $13.17, indicating a potential upside of 61.46%. Aramark has a consensus price target of $38.75, indicating a potential upside of 3.06%. Given GEN Restaurant Group’s stronger consensus rating and higher possible upside, equities analysts plainly believe GEN Restaurant Group is more favorable than Aramark.
Risk & Volatility
GEN Restaurant Group has a beta of 2.31, indicating that its share price is 131% more volatile than the S&P 500. Comparatively, Aramark has a beta of 1.62, indicating that its share price is 62% more volatile than the S&P 500.
Insider & Institutional Ownership
10.2% of GEN Restaurant Group shares are held by institutional investors. 1.9% of Aramark shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Earnings and Valuation
This table compares GEN Restaurant Group and Aramark”s 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 | 1.35 | $8.41 million | $0.18 | 45.31 |
| Aramark | $19.95 billion | 0.50 | $674.11 million | $2.38 | 15.80 |
Aramark has higher revenue and earnings than GEN Restaurant Group. Aramark 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.
Profitability
This table compares GEN Restaurant Group and Aramark’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% |
| Aramark | 1.93% | 14.09% | 3.21% |
Summary
Aramark beats GEN Restaurant Group on 8 of the 14 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 Aramark
Aramark provides food and facilities services to education, healthcare, business and industry, sports, leisure, and corrections clients in the United States and internationally. It operates through two segments, Food and Support Services United States, and Food and Support Services International. The company offers food-related managed services, including dining, catering, food service management, and convenience-oriented retail services; non-clinical food and food-related support services, such as patient food and nutrition, retail food, environmental services, and procurement services; and plant operations and maintenance, custodial/housekeeping, energy management, grounds keeping, and capital project management services. It also provides on-site restaurants, catering, convenience stores, and executive dining services; beverage and vending services; and facility management services comprising landscaping, transportation, capital program management, payment services, and other facility consulting services relating to building operations. In addition, the company offers concessions, banquet, and catering services; retail services and merchandise sale, recreational, and lodging services; and facility management services at sports, entertainment, and recreational facilities. Further, it offers correctional food; and operates commissaries, laundry facilities, and property rooms. It primarily serves business and industry, sports, leisure and corrections, education, healthcare, public institutions, manufacturing, transportation, service, and other industries. The company was formerly known as ARAMARK Holdings Corporation. Aramark was founded in 1959 and is based in Philadelphia, Pennsylvania.