Rocky Mountain Chocolate Factory (NASDAQ:RMCF – Get Free Report) and Archer Daniels Midland (NYSE:ADM – Get Free Report) are both consumer staples companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, earnings, risk, profitability and valuation.
Valuation & Earnings
This table compares Rocky Mountain Chocolate Factory and Archer Daniels Midland”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Rocky Mountain Chocolate Factory | $27.50 million | 0.29 | -$4.56 million | ($0.66) | -1.26 |
| Archer Daniels Midland | $82.10 billion | 0.46 | $1.08 billion | $3.65 | 21.43 |
Archer Daniels Midland has higher revenue and earnings than Rocky Mountain Chocolate Factory. Rocky Mountain Chocolate Factory is trading at a lower price-to-earnings ratio than Archer Daniels Midland, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
50.3% of Rocky Mountain Chocolate Factory shares are owned by institutional investors. Comparatively, 78.3% of Archer Daniels Midland shares are owned by institutional investors. 25.2% of Rocky Mountain Chocolate Factory shares are owned by company insiders. Comparatively, 0.6% of Archer Daniels Midland shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Risk and Volatility
Rocky Mountain Chocolate Factory has a beta of 0.76, meaning that its stock price is 24% less volatile than the S&P 500. Comparatively, Archer Daniels Midland has a beta of 0.64, meaning that its stock price is 36% less volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent recommendations and price targets for Rocky Mountain Chocolate Factory and Archer Daniels Midland, 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 |
| Archer Daniels Midland | 2 | 6 | 3 | 0 | 2.09 |
Archer Daniels Midland has a consensus target price of $81.75, indicating a potential upside of 4.50%. Given Archer Daniels Midland’s stronger consensus rating and higher possible upside, analysts plainly believe Archer Daniels Midland is more favorable than Rocky Mountain Chocolate Factory.
Profitability
This table compares Rocky Mountain Chocolate Factory and Archer Daniels Midland’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Rocky Mountain Chocolate Factory | -22.25% | -130.90% | -30.50% |
| Archer Daniels Midland | 2.16% | 9.21% | 3.95% |
Summary
Archer Daniels Midland 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 Archer Daniels Midland
Archer-Daniels-Midland Company engages in the procurement, transportation, storage, processing, and merchandising of agricultural commodities, ingredients, flavors, and solutions in the United States, Switzerland, the Cayman Islands, Brazil, Mexico, Canada, the United Kingdom, and internationally. It operates in three segments: Ag Services and Oilseeds, Carbohydrate Solutions, and Nutrition. The company originates, merchandises, stores, and transports agricultural raw materials, such as oilseeds and soft seeds. It also engages in the agricultural commodity and feed product import, export, and distribution; and various structured trade finance activities. In addition, the company offers soybean meal and oil; vegetable and salad oils and protein meals; ingredients for the food, feed, energy, and industrial customers; margarine, shortening, and other food products; and partially refined oils to produce biodiesel and glycols for use in chemicals, paints, and other industrial products. Further, it provides peanuts, peanut-derived ingredients, and cotton cellulose pulp; sweeteners, corn and wheat starches, syrup, glucose, wheat flour, and dextrose; alcohol, and other food and animal feed ingredients; ethyl alcohol and ethanol; corn gluten feed and meal; distillers' grains; corn germ; and citric acids. Additionally, the company provides proteins, natural flavors, flavor systems, natural colors, emulsifiers, soluble fiber, polyols, hydrocolloids, probiotics, prebiotics, postbiotics, enzymes, and botanical extracts; and other specialty food and feed ingredients; edible beans; formula feeds, and animal health and nutrition products; and contract and private label pet treats and food products. It also offers futures commission merchant; commodity brokerage services; cash margins and securities pledged to commodity exchange clearinghouse; and cash pledged as security under certain insurance arrangements. The company was founded in 1902 and is headquartered in Chicago, Illinois.
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