Seneca Foods (NASDAQ:SENEA – Get Free Report) and Rocky Mountain Chocolate Factory (NASDAQ:RMCF – Get Free Report) are both small-cap consumer staples companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, profitability, valuation, analyst recommendations, dividends, earnings and institutional ownership.
Insider and Institutional Ownership
42.5% of Seneca Foods shares are owned by institutional investors. Comparatively, 50.3% of Rocky Mountain Chocolate Factory shares are owned by institutional investors. 8.2% of Seneca Foods shares are owned by company insiders. Comparatively, 25.2% of Rocky Mountain Chocolate Factory shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Valuation and Earnings
This table compares Seneca Foods and Rocky Mountain Chocolate Factory”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Seneca Foods | $1.77 billion | 0.70 | $114.67 million | $17.31 | 10.56 |
| Rocky Mountain Chocolate Factory | $27.24 million | 0.33 | -$4.56 million | ($0.61) | -1.56 |
Seneca Foods has higher revenue and earnings than Rocky Mountain Chocolate Factory. Rocky Mountain Chocolate Factory is trading at a lower price-to-earnings ratio than Seneca Foods, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Seneca Foods has a beta of -0.03, indicating that its stock price is 103% less volatile than the S&P 500. Comparatively, Rocky Mountain Chocolate Factory has a beta of 0.76, indicating that its stock price is 24% less volatile than the S&P 500.
Profitability
This table compares Seneca Foods and Rocky Mountain Chocolate Factory’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Seneca Foods | 6.75% | 14.96% | 8.56% |
| Rocky Mountain Chocolate Factory | -19.84% | -100.52% | -26.22% |
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for Seneca Foods and Rocky Mountain Chocolate Factory, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Seneca Foods | 0 | 1 | 0 | 1 | 3.00 |
| Rocky Mountain Chocolate Factory | 1 | 0 | 0 | 0 | 1.00 |
Summary
Seneca Foods beats Rocky Mountain Chocolate Factory on 10 of the 13 factors compared between the two stocks.
About Seneca Foods
Seneca Foods Corporation provides packaged fruits and vegetables in the United States and internationally. The company offers canned, frozen, and jarred produce; jarred fruit; and snack chips and other food products under the private label, as well as under various national and regional brands that the company owns or licenses, including Seneca, Libby’s, Aunt Nellie’s, Cherryman, Green Valley, and READ. In addition, it packs canned and frozen vegetables under contract packing agreements. Further, the company engages in the sale of cans, ends, and seeds, as well as trucking and aircraft operations. It provides its products to grocery outlets, including supermarkets, mass merchandisers, limited assortment stores, club stores, and dollar stores; specialty retailers; and food service distributors, restaurant chains, industrial markets, other food packagers, and export customers in approximately 55 countries, as well as federal, state, and local governments for school and other feeding programs. Seneca Foods Corporation was incorporated in 1949 and is headquartered in Fairport, New York.
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.
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