Rocky Mountain Chocolate Factory (NASDAQ:RMCF) & Bloomin’ Brands (NASDAQ:BLMN) Financial Survey

Rocky Mountain Chocolate Factory (NASDAQ:RMCF) and Bloomin’ Brands (NASDAQ:BLMN) are both small-cap retail/wholesale companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, valuation, analyst recommendations, profitability, institutional ownership, earnings and risk.

Earnings and Valuation

This table compares Rocky Mountain Chocolate Factory and Bloomin’ Brands”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rocky Mountain Chocolate Factory	$29.58 million	0.75	-$6.12 million	($0.52)	-4.60
Bloomin’ Brands	$3.95 billion	0.13	-$128.02 million	($0.67)	-8.76

Rocky Mountain Chocolate Factory has higher earnings, but lower revenue than Bloomin’ Brands. Bloomin’ Brands is trading at a lower price-to-earnings ratio than Rocky Mountain Chocolate Factory, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

50.3% of Rocky Mountain Chocolate Factory shares are owned by institutional investors. 42.2% of Rocky Mountain Chocolate Factory shares are owned by company insiders. Comparatively, 3.0% of Bloomin’ Brands shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Rocky Mountain Chocolate Factory	-13.62%	-62.48%	-19.16%
Bloomin’ Brands	-1.46%	33.92%	3.25%

Analyst Ratings

This is a summary of current recommendations for Rocky Mountain Chocolate Factory and Bloomin’ Brands, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rocky Mountain Chocolate Factory	1	0	0	0	1.00
Bloomin’ Brands	1	7	0	0	1.88

Bloomin’ Brands has a consensus target price of $8.64, suggesting a potential upside of 47.24%. Given Bloomin’ Brands’ stronger consensus rating and higher possible upside, analysts plainly believe Bloomin’ Brands is more favorable than Rocky Mountain Chocolate Factory.

Volatility & Risk

Rocky Mountain Chocolate Factory has a beta of 0.73, suggesting that its stock price is 27% less volatile than the S&P 500. Comparatively, Bloomin’ Brands has a beta of 1.15, suggesting that its stock price is 15% more volatile than the S&P 500.

Summary

Bloomin’ Brands beats Rocky Mountain Chocolate Factory on 7 of the 13 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 Bloomin’ Brands

Bloomin’ Brands, Inc. engages in the acquisition, operation, design, and development of restaurant concepts. It operates through the U.S. and International geographical segments. The U.S. segment operates in the USA and Puerto Rico. The International segment operates in Brazil, South Korea, Hong Kong, and China. Its brands include Outback Steakhouse, Carrabba’s Italian Grill, Bonefish Grill, and Fleming’s Prime Steakhouse and Wine Bar. The company was founded by Chris Thomas Sullivan, Robert Danker Basham and John Timothy Gannon in March 1988 and is headquartered in Tampa, FL.