McDonald’s (NYSE:MCD – Get Free Report) and GEN Restaurant Group (NASDAQ:GENK – Get Free Report) are both retail/wholesale companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, dividends, profitability, analyst recommendations, valuation, institutional ownership and earnings.
Profitability
This table compares McDonald’s and GEN Restaurant Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| McDonald’s | 31.79% | -175.42% | 15.61% |
| GEN Restaurant Group | 0.39% | 1.83% | 0.37% |
Analyst Ratings
This is a breakdown of current recommendations and price targets for McDonald’s and GEN Restaurant Group, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| McDonald’s | 0 | 9 | 18 | 0 | 2.67 |
| GEN Restaurant Group | 0 | 0 | 3 | 0 | 3.00 |
Valuation and Earnings
This table compares McDonald’s and GEN Restaurant Group”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| McDonald’s | $25.49 billion | 8.12 | $8.47 billion | $11.39 | 25.36 |
| GEN Restaurant Group | $198.83 million | 1.06 | $8.41 million | $0.17 | 37.65 |
McDonald’s has higher revenue and earnings than GEN Restaurant Group. McDonald’s 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.
Risk and Volatility
McDonald’s has a beta of 0.73, meaning that its stock price is 27% less volatile than the S&P 500. Comparatively, GEN Restaurant Group has a beta of 1.95, meaning that its stock price is 95% more volatile than the S&P 500.
Insider & Institutional Ownership
70.3% of McDonald’s shares are held by institutional investors. Comparatively, 10.2% of GEN Restaurant Group shares are held by institutional investors. 0.2% of McDonald’s shares are held by company insiders. Comparatively, 61.1% of GEN Restaurant Group shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Summary
McDonald’s beats GEN Restaurant Group on 8 of the 14 factors compared between the two stocks.
About McDonald’s
McDonald's Corporation operates and franchises restaurants under the McDonald's brand in the United States and internationally. It offers food and beverages, including hamburgers and cheeseburgers, various chicken sandwiches, fries, shakes, desserts, sundaes, cookies, pies, soft drinks, coffee, and other beverages; and full or limited breakfast, as well as sells various other products during limited-time promotions. The company owns and operates under various structures comprising conventional franchise, developmental license, or affiliate. McDonald's Corporation was founded in 1940 and is based in Chicago, Illinois.
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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