Rocky Mountain Chocolate Factory (NASDAQ:RMCF – Get Free Report) and Ingredion (NYSE:INGR – Get Free Report) are both consumer staples companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, profitability, analyst recommendations, dividends, institutional ownership, valuation and risk.
Analyst Recommendations
This is a breakdown of recent recommendations for Rocky Mountain Chocolate Factory and Ingredion, 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 |
| Ingredion | 0 | 8 | 1 | 0 | 2.11 |
Ingredion has a consensus price target of $120.29, suggesting a potential upside of 25.85%. Given Ingredion’s stronger consensus rating and higher possible upside, analysts clearly believe Ingredion is more favorable than Rocky Mountain Chocolate Factory.
Earnings & Valuation
This table compares Rocky Mountain Chocolate Factory and Ingredion”s 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 | 0.31 | -$4.56 million | ($0.66) | -1.33 |
| Ingredion | $7.21 billion | 0.84 | $729.00 million | $9.17 | 10.42 |
Ingredion has higher revenue and earnings than Rocky Mountain Chocolate Factory. Rocky Mountain Chocolate Factory is trading at a lower price-to-earnings ratio than Ingredion, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Rocky Mountain Chocolate Factory has a beta of 0.76, suggesting that its stock price is 24% less volatile than the S&P 500. Comparatively, Ingredion has a beta of 0.65, suggesting that its stock price is 35% less volatile than the S&P 500.
Profitability
This table compares Rocky Mountain Chocolate Factory and Ingredion’s 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% |
| Ingredion | 8.21% | 15.40% | 8.48% |
Institutional & Insider Ownership
50.3% of Rocky Mountain Chocolate Factory shares are owned by institutional investors. Comparatively, 85.3% of Ingredion shares are owned by institutional investors. 25.2% of Rocky Mountain Chocolate Factory shares are owned by company insiders. Comparatively, 1.6% of Ingredion shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Summary
Ingredion 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 Ingredion
Ingredion Incorporated, together with its subsidiaries, manufactures and sells sweeteners, starches, nutrition ingredients, and biomaterial solutions derived from wet milling and processing corn, and other starch-based materials to a range of industries in North America, South America, the Asia Pacific, Europe, the Middle East, and Africa. The company offers starch products for use in a range of processed foods; cornstarch; specialty paper starches for enhanced drainage, fiber retention, oil and grease resistance, improved printability, and biochemical oxygen demand control; starches and specialty starches for textile industry; industrial starches are used in the production of construction materials, textiles, adhesives, pharmaceuticals, and cosmetics, as well as in mining and water filtration; and specialty industrial starches for use in biomaterial applications, including biodegradable plastics, fabric softeners and detergents, hair and skin care applications, dusting powders for surgical gloves, and in the production of glass fiber and insulation. It also provides sweetener products comprising glucose syrups, high maltose syrup, high fructose corn syrup, dextrose, polyols, maltodextrin, glucose syrup solids, and non-genetically modified organism syrups for applications in food and beverage products, such as baked goods, snack foods, canned fruits, condiments, candy and other sweets, dairy products, ice cream, jams and jellies, prepared mixes, table syrups, and beverages. In addition, the company sells refined corn oil, corn gluten feed, and corn gluten meal; and other products, including fruit and vegetable products, such as concentrates, purees, and essences, as well as pulse proteins and hydrocolloids systems and blends. The company was formerly known as Corn Products International, Inc. and changed its name to Ingredion Incorporated in June 2012. Ingredion Incorporated was founded in 1906 and is headquartered in Westchester, Illinois.
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