ONE Group Hospitality (NASDAQ:STKS – Get Free Report) and Rocky Mountain Chocolate Factory (NASDAQ:RMCF – Get Free Report) are both small-cap retail/wholesale companies, but which is the better stock? We will contrast the two businesses based on the strength of their dividends, profitability, risk, analyst recommendations, valuation, earnings and institutional ownership.
Analyst Ratings
This is a breakdown of current ratings for ONE Group Hospitality and Rocky Mountain Chocolate Factory, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| ONE Group Hospitality | 2 | 1 | 1 | 0 | 1.75 |
| Rocky Mountain Chocolate Factory | 1 | 0 | 0 | 0 | 1.00 |
ONE Group Hospitality currently has a consensus price target of $4.50, suggesting a potential upside of 134.38%. Given ONE Group Hospitality’s stronger consensus rating and higher probable upside, analysts plainly believe ONE Group Hospitality is more favorable than Rocky Mountain Chocolate Factory.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| ONE Group Hospitality | -11.15% | -6.77% | 0.40% |
| Rocky Mountain Chocolate Factory | -13.62% | -62.48% | -19.16% |
Institutional and Insider Ownership
29.1% of ONE Group Hospitality shares are held by institutional investors. Comparatively, 50.3% of Rocky Mountain Chocolate Factory shares are held by institutional investors. 25.7% of ONE Group Hospitality 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 endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Volatility and Risk
ONE Group Hospitality has a beta of 1.29, meaning that its share price is 29% more volatile than the S&P 500. Comparatively, Rocky Mountain Chocolate Factory has a beta of 0.7, meaning that its share price is 30% less volatile than the S&P 500.
Valuation & Earnings
This table compares ONE Group Hospitality and Rocky Mountain Chocolate Factory”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| ONE Group Hospitality | $807.41 million | 0.08 | -$92.24 million | ($4.03) | -0.48 |
| Rocky Mountain Chocolate Factory | $29.58 million | 0.67 | -$6.12 million | ($0.52) | -4.10 |
Rocky Mountain Chocolate Factory has lower revenue, but higher earnings than ONE Group Hospitality. Rocky Mountain Chocolate Factory is trading at a lower price-to-earnings ratio than ONE Group Hospitality, indicating that it is currently the more affordable of the two stocks.
Summary
ONE Group Hospitality beats Rocky Mountain Chocolate Factory on 9 of the 14 factors compared between the two stocks.
About ONE Group Hospitality
The ONE Group Hospitality, Inc., a restaurant company, develops, owns, operates, manages, and licenses restaurants and lounges worldwide. It operates through STK, Kona Grill, and ONE Hospitality segments. The company also provides turn-key food and beverage services for hospitality venues, including hotels, casinos, and other locations. Its hospitality food and beverage solutions include developing, managing, and operating restaurants, bars, rooftops, pools, banqueting, catering, private dining rooms, room service, and mini bars; and offers hospitality advisory and consulting services. The company operates restaurants primarily under the STK and Kona Grill brands. The ONE Group Hospitality, Inc. was founded in 2004 and is based in Denver, Colorado.
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.
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