Compass Group (OTCMKTS:CMPGY) vs. Rocky Mountain Chocolate Factory (NASDAQ:RMCF) Financial Analysis

Rocky Mountain Chocolate Factory (NASDAQ:RMCF) and Compass Group (OTCMKTS:CMPGY) are both retail/wholesale companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, dividends, analyst recommendations, risk, profitability and earnings.

Analyst Recommendations

This is a summary of recent ratings and target prices for Rocky Mountain Chocolate Factory and Compass Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rocky Mountain Chocolate Factory	1	0	0	0	1.00
Compass Group	0	0	2	2	3.50

Volatility & Risk

Rocky Mountain Chocolate Factory has a beta of 0.73, indicating that its stock price is 27% less volatile than the S&P 500. Comparatively, Compass Group has a beta of 0.68, indicating that its stock price is 32% less volatile than the S&P 500.

Insider & Institutional Ownership

50.3% of Rocky Mountain Chocolate Factory shares are held by institutional investors. Comparatively, 0.0% of Compass Group shares are held by institutional investors. 42.2% of Rocky Mountain Chocolate Factory shares are held by insiders. Comparatively, 0.0% of Compass Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Rocky Mountain Chocolate Factory and Compass Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Rocky Mountain Chocolate Factory	-13.62%	-62.48%	-19.16%
Compass Group	N/A	N/A	N/A

Earnings and Valuation

This table compares Rocky Mountain Chocolate Factory and Compass Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rocky Mountain Chocolate Factory	$29.58 million	0.82	-$6.12 million	($0.52)	-5.00
Compass Group	$46.07 billion	1.07	$1.87 billion	N/A	N/A

Compass Group has higher revenue and earnings than Rocky Mountain Chocolate Factory.

Summary

Compass Group beats Rocky Mountain Chocolate Factory on 9 of the 12 factors compared between the two stocks.

About Rocky Mountain Chocolate Factory

Rocky Mountain Chocolate Factory, Inc., together with its subsidiaries, operates as a confectionery franchisor, manufacturer, and retail operator. It operates through Franchising, Manufacturing, Retail Stores, and Other segments. The company produces approximately 400 chocolate candies and other confectionery products, including clusters, caramels, creams, toffees, mints, and truffles; and offers 15 varieties of caramel apples and other products that are prepared in individual stores, as well as provides ice cream, coffee, and other sundries. Rocky Mountain Chocolate Factory, Inc. was founded in 1981 and is headquartered in Durango, Colorado.

About Compass Group

Compass Group PLC operates as a food and support services company in North America, Europe, and internationally. The company offers support services, such as cleaning in hospitals; reception services at corporate headquarters; managing remote camps; grounds and facilities services at schools and universities; and others. It serves business and industry; healthcare and senior living market; education; sports and leisure; and defense, offshore, and remote sectors. Compass Group PLC was founded in 1941 and is based in Chertsey, the United Kingdom.