Head-To-Head Survey: Rocky Mountain Chocolate Factory (NASDAQ:RMCF) vs. Latitude 360 (OTCMKTS:LATX)

Latitude 360 (OTCMKTS:LATX) and Rocky Mountain Chocolate Factory (NASDAQ:RMCF) are both retail/wholesale companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, valuation, profitability, institutional ownership, risk, dividends and earnings.

Profitability

This table compares Latitude 360 and Rocky Mountain Chocolate Factory’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Latitude 360	N/A	N/A	N/A
Rocky Mountain Chocolate Factory	-15.77%	-63.75%	-22.21%

Analyst Ratings

This is a summary of current recommendations for Latitude 360 and Rocky Mountain Chocolate Factory, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Latitude 360	0	0	0	0	0.00
Rocky Mountain Chocolate Factory	1	0	0	0	1.00

Given Latitude 360’s higher probable upside, analysts clearly believe Latitude 360 is more favorable than Rocky Mountain Chocolate Factory.

Institutional and Insider Ownership

50.3% of Rocky Mountain Chocolate Factory shares are held by institutional investors. 24.5% of Latitude 360 shares are held by company insiders. Comparatively, 42.2% of Rocky Mountain Chocolate Factory shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Latitude 360 and Rocky Mountain Chocolate Factory”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Latitude 360	N/A	N/A	N/A	N/A	N/A
Rocky Mountain Chocolate Factory	$29.99 million	0.40	-$6.12 million	($0.61)	-2.54

Latitude 360 has higher earnings, but lower revenue than Rocky Mountain Chocolate Factory.

About Latitude 360

Latitude 360, Inc. operates as a casual dining restaurant/entertainment company in the United States. The company plans, develops, constructs, and operates restaurant/entertainment venues. Its restaurant/entertainment venues feature a grille and bar; luxury bowling lanes; a dine-in movie theater with home theater-style seating; game room; a dine-in live performance theater; a HD sports theater; a bar with a dance floor and stage for the DJs and regional bands every weekend; and a luxury boutique cigar lounge. The company operates three restaurant/entertainment venues in Jacksonville, Florida, Pittsburgh, Pennsylvania, and Indianapolis, Indiana. Its restaurant/entertainment venues serve consumers and corporate clients. The company is headquartered in Jacksonville, Florida. On January 10, 2017, an involuntary petition for reorganization under Chapter 11 was filed against Latitude 360, Inc. in the U.S. Bankruptcy Court for the Middle District of Florida. On February 7, 2017, the involuntary petition was approved by the Court.

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.