Head-To-Head Comparison: Rocky Mountain Chocolate Factory (RMCF) & Its Competitors

Rocky Mountain Chocolate Factory (NASDAQ:RMCF) is one of 328 publicly-traded companies in the “Food Products” industry, but how does it weigh in compared to its peers? We will compare Rocky Mountain Chocolate Factory to similar businesses based on the strength of its analyst recommendations, institutional ownership, dividends, profitability, earnings, valuation and risk.

Institutional & Insider Ownership

50.3% of Rocky Mountain Chocolate Factory shares are owned by institutional investors. Comparatively, 39.6% of shares of all “Food Products” companies are owned by institutional investors. 25.2% of Rocky Mountain Chocolate Factory shares are owned by insiders. Comparatively, 19.2% of shares of all “Food Products” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Rocky Mountain Chocolate Factory and its peers gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Rocky Mountain Chocolate Factory	$27.50 million	-$4.56 million	-1.29
Rocky Mountain Chocolate Factory Competitors	$15.46 billion	$700.97 million	-2,414.36

Rocky Mountain Chocolate Factory’s peers have higher revenue and earnings than Rocky Mountain Chocolate Factory. Rocky Mountain Chocolate Factory is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares Rocky Mountain Chocolate Factory and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Rocky Mountain Chocolate Factory	-22.25%	-130.90%	-30.50%
Rocky Mountain Chocolate Factory Competitors	-13.54%	-142.51%	-2.55%

Analyst Ratings

This is a summary of recent ratings for Rocky Mountain Chocolate Factory and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rocky Mountain Chocolate Factory	1	0	0	0	1.00
Rocky Mountain Chocolate Factory Competitors	2435	8280	8358	401	2.35

As a group, “Food Products” companies have a potential upside of 18.54%. Given Rocky Mountain Chocolate Factory’s peers stronger consensus rating and higher possible upside, analysts plainly believe Rocky Mountain Chocolate Factory has less favorable growth aspects than its peers.

Risk & Volatility

Rocky Mountain Chocolate Factory has a beta of 0.67, suggesting that its share price is 33% less volatile than the S&P 500. Comparatively, Rocky Mountain Chocolate Factory’s peers have a beta of -3.82, suggesting that their average share price is 482% less volatile than the S&P 500.

Summary

Rocky Mountain Chocolate Factory peers beat Rocky Mountain Chocolate Factory on 8 of the 13 factors compared.

Rocky Mountain Chocolate Factory Company Profile

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.