Noble Roman’s (OTCMKTS:NROM – Get Free Report) and Rocky Mountain Chocolate Factory (NASDAQ:RMCF – Get Free Report) are both small-cap retail/wholesale companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, valuation, profitability, institutional ownership, analyst recommendations, risk and dividends.
Profitability
This table compares Noble Roman’s and Rocky Mountain Chocolate Factory’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Noble Roman’s | 6.22% | 36.47% | 5.97% |
| Rocky Mountain Chocolate Factory | -13.62% | -62.48% | -19.16% |
Volatility and Risk
Noble Roman’s has a beta of 0.37, meaning that its share price is 63% less volatile than the S&P 500. Comparatively, Rocky Mountain Chocolate Factory has a beta of 0.7, meaning that its share price is 30% less volatile than the S&P 500.
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Noble Roman’s | $15.15 million | 0.44 | $1.11 million | $0.05 | 6.00 |
| Rocky Mountain Chocolate Factory | $29.58 million | 0.65 | -$6.12 million | ($0.52) | -3.98 |
Noble Roman’s has higher earnings, but lower revenue than Rocky Mountain Chocolate Factory. Rocky Mountain Chocolate Factory is trading at a lower price-to-earnings ratio than Noble Roman’s, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
50.3% of Rocky Mountain Chocolate Factory shares are held by institutional investors. 25.6% of Noble Roman’s shares are held by insiders. Comparatively, 42.2% of Rocky Mountain Chocolate Factory 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.
Analyst Ratings
This is a breakdown of recent recommendations and price targets for Noble Roman’s and Rocky Mountain Chocolate Factory, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Noble Roman’s | 0 | 0 | 0 | 0 | 0.00 |
| Rocky Mountain Chocolate Factory | 1 | 0 | 0 | 0 | 1.00 |
About Noble Roman’s
Noble Roman's, Inc. sells and services franchises, and licenses and operates foodservice locations for stand-alone restaurants and non-traditional foodservice operations. The company franchises, licenses, and operates foodservice locations under the Noble Roman's Craft Pizza & Pub, Noble Roman's Pizza, Noble Roman's Take-N-Bake, and Tuscano's Italian Style Subs trade names, which provide breadsticks and cheesy stix with dip, pizza, pasta, salads, wings, baked sandwiches, and other related breakfast products, as well as a selection of desserts. The company was incorporated in 1972 and is headquartered in Indianapolis, Indiana.
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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