Rocky Mountain Chocolate Factory (NASDAQ:RMCF – Get Free Report) and BellRing Brands (NYSE:BRBR – Get Free Report) are both small-cap consumer staples companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, valuation, risk, analyst recommendations, earnings, dividends and institutional ownership.
Volatility & Risk
Rocky Mountain Chocolate Factory has a beta of 0.74, suggesting that its share price is 26% less volatile than the S&P 500. Comparatively, BellRing Brands has a beta of 0.43, suggesting that its share price is 57% less volatile than the S&P 500.
Profitability
This table compares Rocky Mountain Chocolate Factory and BellRing Brands’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Rocky Mountain Chocolate Factory | -19.84% | -100.52% | -26.22% |
| BellRing Brands | 7.28% | -33.04% | 15.63% |
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Rocky Mountain Chocolate Factory | 1 | 0 | 0 | 0 | 1.00 |
| BellRing Brands | 1 | 8 | 9 | 0 | 2.44 |
BellRing Brands has a consensus price target of $19.82, suggesting a potential upside of 121.30%. Given BellRing Brands’ stronger consensus rating and higher probable upside, analysts clearly believe BellRing Brands is more favorable than Rocky Mountain Chocolate Factory.
Institutional & Insider Ownership
50.3% of Rocky Mountain Chocolate Factory shares are held by institutional investors. Comparatively, 95.0% of BellRing Brands shares are held by institutional investors. 25.2% of Rocky Mountain Chocolate Factory shares are held by insiders. Comparatively, 1.5% of BellRing Brands shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Valuation and Earnings
This table compares Rocky Mountain Chocolate Factory and BellRing Brands”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Rocky Mountain Chocolate Factory | $27.50 million | 0.29 | -$4.56 million | ($0.61) | -1.39 |
| BellRing Brands | $2.32 billion | 0.45 | $216.20 million | $1.42 | 6.31 |
BellRing Brands has higher revenue and earnings than Rocky Mountain Chocolate Factory. Rocky Mountain Chocolate Factory is trading at a lower price-to-earnings ratio than BellRing Brands, indicating that it is currently the more affordable of the two stocks.
Summary
BellRing Brands beats Rocky Mountain Chocolate Factory on 12 of the 14 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 BellRing Brands
BellRing Brands, Inc., together with its subsidiaries, provides various nutrition products in the United States. The company offers ready-to-drink (RTD) protein shakes, other RTD beverages, powders, nutrition bars, and other products primarily under the Premier Protein and Dymatize brands. It distributes its products through club, food, drug, mass, eCommerce, specialty, and convenience channels. BellRing Brands, Inc. was incorporated in 2019 and is headquartered in Saint Louis, Missouri.
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