Rocky Mountain Chocolate Factory (NASDAQ:RMCF) vs. Restaurant Brands International (NYSE:QSR) Financial Survey

Rocky Mountain Chocolate Factory (NASDAQ:RMCF) and Restaurant Brands International (NYSE:QSR) are both retail/wholesale companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, earnings, institutional ownership, profitability, dividends, risk and analyst recommendations.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Rocky Mountain Chocolate Factory	-16.58%	-75.71%	-21.90%
Restaurant Brands International	9.96%	32.80%	6.67%

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Rocky Mountain Chocolate Factory and Restaurant Brands International, 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
Restaurant Brands International	1	8	17	0	2.62

Restaurant Brands International has a consensus price target of $83.54, indicating a potential upside of 11.41%. Given Restaurant Brands International’s stronger consensus rating and higher probable upside, analysts plainly believe Restaurant Brands International is more favorable than Rocky Mountain Chocolate Factory.

Insider and Institutional Ownership

50.3% of Rocky Mountain Chocolate Factory shares are owned by institutional investors. Comparatively, 82.3% of Restaurant Brands International shares are owned by institutional investors. 42.2% of Rocky Mountain Chocolate Factory shares are owned by company insiders. Comparatively, 1.2% of Restaurant Brands International shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Rocky Mountain Chocolate Factory and Restaurant Brands International”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rocky Mountain Chocolate Factory	$27.50 million	0.55	-$4.56 million	($0.53)	-3.02
Restaurant Brands International	$9.43 billion	2.76	$776.00 million	$2.84	26.40

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

Volatility and Risk

Rocky Mountain Chocolate Factory has a beta of 0.63, indicating that its share price is 37% less volatile than the S&P 500. Comparatively, Restaurant Brands International has a beta of 0.49, indicating that its share price is 51% less volatile than the S&P 500.

Summary

Restaurant Brands International 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 Restaurant Brands International

Restaurant Brands International Inc. operates as a quick-service restaurant company in Canada, the United States, and internationally. It operates through four segments: Tim Hortons (TH), Burger King (BK), Popeyes Louisiana Kitchen (PLK), and Firehouse Subs (FHS). The company owns and franchises TH chain of donut/coffee/tea restaurants that offer blend coffee, tea, and espresso-based hot and cold specialty drinks; and fresh baked goods, including donuts, Timbits, bagels, muffins, cookies and pastries, grilled paninis, classic sandwiches, wraps, soups, and other food products. It is also involved in owning and franchising BK, a fast-food hamburger restaurant chain, which offers flame-grilled hamburgers, chicken and other specialty sandwiches, French fries, soft drinks, and other food items; and PLK quick service restaurants that provide Louisiana-style fried chicken, chicken tenders, fried shrimp and other seafood, red beans and rice, and other regional items. In addition, the company owns and franchises FHS quick service restaurants that offer meats and cheese, chopped salads, chili and soups, signature and other sides, soft drinks, and local specialties. The company was founded in 1954 and is headquartered in Toronto, Canada.