Contrasting GEN Restaurant Group (NASDAQ:GENK) and Planet Fitness (NYSE:PLNT)
by Danessa Lincoln · The Markets DailyPlanet Fitness (NYSE:PLNT – Get Free Report) and GEN Restaurant Group (NASDAQ:GENK – Get Free Report) are both consumer discretionary companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, dividends, valuation, analyst recommendations, earnings, profitability and institutional ownership.
Volatility & Risk
Planet Fitness has a beta of 1.05, indicating that its stock price is 5% more volatile than the S&P 500. Comparatively, GEN Restaurant Group has a beta of 0.98, indicating that its stock price is 2% less volatile than the S&P 500.
Earnings and Valuation
This table compares Planet Fitness and GEN Restaurant Group”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Planet Fitness | $1.32 billion | 2.99 | $219.10 million | $2.95 | 17.74 |
| GEN Restaurant Group | $212.54 million | 0.23 | -$3.03 million | ($0.83) | -1.82 |
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.
Analyst Recommendations
This is a summary of recent ratings for Planet Fitness and GEN Restaurant Group, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Planet Fitness | 1 | 9 | 11 | 1 | 2.55 |
| GEN Restaurant Group | 1 | 2 | 1 | 0 | 2.00 |
Planet Fitness currently has a consensus target price of $69.34, suggesting a potential upside of 32.47%. GEN Restaurant Group has a consensus target price of $3.00, suggesting a potential upside of 98.68%. Given GEN Restaurant Group’s higher probable upside, analysts clearly believe GEN Restaurant Group is more favorable than Planet Fitness.
Profitability
This table compares Planet Fitness and GEN Restaurant Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Planet Fitness | 16.88% | -59.46% | 8.60% |
| GEN Restaurant Group | -2.09% | -7.76% | -0.77% |
Institutional & Insider Ownership
95.5% of Planet Fitness shares are owned by institutional investors. Comparatively, 10.2% of GEN Restaurant Group shares are owned by institutional investors. 0.9% of Planet Fitness shares are owned by insiders. Comparatively, 59.1% of GEN Restaurant Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Summary
Planet Fitness beats GEN Restaurant Group on 12 of the 15 factors compared between the two stocks.
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.
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.