Rocky Mountain Chocolate Factory (NASDAQ:RMCF – Get Free Report) and Domino’s Pizza (NASDAQ:DPZ – Get Free Report) are both retail/wholesale companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, dividends, earnings, analyst recommendations, profitability, institutional ownership and risk.
Volatility and Risk
Rocky Mountain Chocolate Factory has a beta of 0.71, indicating that its stock price is 29% less volatile than the S&P 500. Comparatively, Domino’s Pizza has a beta of 1.14, indicating that its stock price is 14% more volatile than the S&P 500.
Profitability
This table compares Rocky Mountain Chocolate Factory and Domino’s Pizza’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Rocky Mountain Chocolate Factory | -15.77% | -63.75% | -22.21% |
| Domino’s Pizza | 12.16% | -14.91% | 33.28% |
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Rocky Mountain Chocolate Factory | $29.58 million | 0.41 | -$6.12 million | ($0.61) | -2.56 |
| Domino’s Pizza | $4.85 billion | 3.05 | $584.17 million | $17.11 | 25.57 |
Domino’s Pizza has higher revenue and earnings than Rocky Mountain Chocolate Factory. Rocky Mountain Chocolate Factory is trading at a lower price-to-earnings ratio than Domino’s Pizza, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
50.3% of Rocky Mountain Chocolate Factory shares are held by institutional investors. Comparatively, 94.6% of Domino’s Pizza shares are held by institutional investors. 42.2% of Rocky Mountain Chocolate Factory shares are held by company insiders. Comparatively, 0.8% of Domino’s Pizza shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Analyst Ratings
This is a summary of recent ratings and price targets for Rocky Mountain Chocolate Factory and Domino’s Pizza, 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 |
| Domino’s Pizza | 2 | 11 | 12 | 2 | 2.52 |
Domino’s Pizza has a consensus target price of $490.40, suggesting a potential upside of 12.09%. Given Domino’s Pizza’s stronger consensus rating and higher probable upside, analysts clearly believe Domino’s Pizza is more favorable than Rocky Mountain Chocolate Factory.
Summary
Domino’s Pizza beats Rocky Mountain Chocolate Factory on 14 of the 15 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 Domino’s Pizza
Domino’s Pizza, Inc., through its subsidiaries, operates as a pizza company in the United States and internationally. The company operates through three segments: U.S. Stores, International Franchise, and Supply Chain. It offers pizzas under the Domino’s brand name through company-owned and franchised stores. It also provides oven-baked sandwiches, pastas, boneless chicken and chicken wings, breads and dips, desserts, and soft drink products, as well as loaded tots and pepperoni stuffed cheesy breads. Domino’s Pizza, Inc. was founded in 1960 and is headquartered in Ann Arbor, Michigan.
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