Rocky Mountain Chocolate Factory (NASDAQ:RMCF) and J d Wetherspoon (OTCMKTS:JDWPY) Financial Survey

Rocky Mountain Chocolate Factory (NASDAQ:RMCF) and J d Wetherspoon (OTCMKTS:JDWPY) are both small-cap retail/wholesale companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, institutional ownership, analyst recommendations, risk, dividends, earnings and valuation.

Volatility & Risk

Rocky Mountain Chocolate Factory has a beta of 0.7, indicating that its stock price is 30% less volatile than the S&P 500. Comparatively, J d Wetherspoon has a beta of 1.04, indicating that its stock price is 4% more volatile than the S&P 500.

Insider & Institutional Ownership

50.3% of Rocky Mountain Chocolate Factory shares are held by institutional investors. 25.2% 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 is poised for long-term growth.

Valuation and Earnings

This table compares Rocky Mountain Chocolate Factory and J d Wetherspoon”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	0.31	-$4.56 million	($0.61)	-1.50
J d Wetherspoon	$2.76 billion	0.37	$88.36 million	N/A	N/A

J d Wetherspoon has higher revenue and earnings than Rocky Mountain Chocolate Factory.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Rocky Mountain Chocolate Factory and J d Wetherspoon, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rocky Mountain Chocolate Factory	1	0	0	0	1.00
J d Wetherspoon	1	0	0	0	1.00

Profitability

This table compares Rocky Mountain Chocolate Factory and J d Wetherspoon’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Rocky Mountain Chocolate Factory	-19.84%	-100.52%	-26.22%
J d Wetherspoon	N/A	N/A	N/A

Summary

J d Wetherspoon beats Rocky Mountain Chocolate Factory on 7 of the 9 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 J d Wetherspoon

J D Wetherspoon plc owns and operates pubs and hotels in the United Kingdom and the Republic of Ireland. The company was founded in 1979 and is based in Watford, the United Kingdom.