GEN Restaurant Group (NASDAQ:GENK) & Hyatt Hotels (NYSE:H) Critical Survey

Hyatt Hotels (NYSE:H) and GEN Restaurant Group (NASDAQ:GENK) are both consumer discretionary companies, but which is the better stock? We will contrast the two companies based on the strength of their earnings, institutional ownership, valuation, risk, dividends, profitability and analyst recommendations.

Institutional & Insider Ownership

73.5% of Hyatt Hotels shares are owned by institutional investors. Comparatively, 10.2% of GEN Restaurant Group shares are owned by institutional investors. 23.6% of Hyatt Hotels 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.

Volatility and Risk

Hyatt Hotels has a beta of 1.4, suggesting that its share price is 40% more volatile than the S&P 500. Comparatively, GEN Restaurant Group has a beta of 0.98, suggesting that its share price is 2% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Hyatt Hotels and GEN Restaurant Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hyatt Hotels	0	6	10	0	2.62
GEN Restaurant Group	1	2	1	0	2.00

Hyatt Hotels currently has a consensus target price of $197.87, indicating a potential upside of 24.13%. GEN Restaurant Group has a consensus target price of $3.00, indicating a potential upside of 87.50%. Given GEN Restaurant Group’s higher probable upside, analysts clearly believe GEN Restaurant Group is more favorable than Hyatt Hotels.

Earnings & Valuation

This table compares Hyatt Hotels and GEN Restaurant Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hyatt Hotels	$7.10 billion	2.12	-$52.00 million	$0.82	194.39
GEN Restaurant Group	$212.54 million	0.25	-$3.03 million	($0.83)	-1.93

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

Profitability

This table compares Hyatt Hotels and GEN Restaurant Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hyatt Hotels	1.10%	7.27%	1.85%
GEN Restaurant Group	-2.09%	-7.76%	-0.77%

Summary

Hyatt Hotels beats GEN Restaurant Group on 11 of the 14 factors compared between the two stocks.

About Hyatt Hotels

Hyatt Hotels Corporation operates as a hospitality company in the United States and internationally. It operates through Owned and Leased Hotels, Americas Management and Franchising, ASPAC Management and Franchising, EAME Management and Franchising, and Apple Leisure Group segments. The company manages, franchises, licenses, owns, and leases portfolio of properties, consisting of full-service hotels and resorts, select service hotels, and other properties, including timeshare, fractional, residential, vacation, and condominium units. It operates its properties under the Park Hyatt, Grand Hyatt, Hyatt Regency, Hyatt, Hyatt vacation Club, Hyatt Place, Hyatt House, Hyatt Studios, UrCove, Miraval, Alila, Andaz, Thompson Hotels, Dream Hotels, Hyatt Centric, Caption by Hyatt, The Unbound Collection by Hyatt, Destination by Hyatt, JdV by Hyatt, Hyatt Ziva, Hyatt Zilara, Zoëtry Wellness & Spa Resorts, Secrets Resorts & Spas, Breathless Resorts & Spas, Dreams Resorts & Spas, Hyatt Vivid Hotel & Resorts, Alua Hotels & Resorts, Sunscape Resorts & Spas, Maison Métier, and The Barnett brand name. The company offers short-term vacation rental platform, Homes & Hideaways by World of Hyatt, that features direct booking for short-term private home rentals in the United States. It primarily serves corporations; national, state, and regional associations; specialty market accounts, including social, government, military, educational, religious, and fraternal organizations; travel agency and luxury organizations; and a group of individual consumers. It also operates World of Hyatt loyalty program, which rewards points that can be redeemed for hotel nights and other rewards. Hyatt Hotels Corporation was founded in 1957 and is headquartered 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.