Rocky Mountain Chocolate Factory (NASDAQ:RMCF – Get Free Report) and Kraft Heinz (NASDAQ:KHC – Get Free Report) are both consumer staples companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, profitability, analyst recommendations, dividends, valuation, earnings and risk.
Volatility & Risk
Rocky Mountain Chocolate Factory has a beta of 0.74, indicating that its share price is 26% less volatile than the S&P 500. Comparatively, Kraft Heinz has a beta of 0.09, indicating that its share price is 91% less volatile than the S&P 500.
Earnings and Valuation
This table compares Rocky Mountain Chocolate Factory and Kraft Heinz”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 | 0.29 | -$4.56 million | ($0.61) | -1.39 |
| Kraft Heinz | $24.90 billion | 1.14 | -$5.85 billion | ($2.86) | -8.39 |
Rocky Mountain Chocolate Factory has higher earnings, but lower revenue than Kraft Heinz. Kraft Heinz is trading at a lower price-to-earnings ratio than Rocky Mountain Chocolate Factory, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
50.3% of Rocky Mountain Chocolate Factory shares are owned by institutional investors. Comparatively, 78.2% of Kraft Heinz shares are owned by institutional investors. 25.2% of Rocky Mountain Chocolate Factory shares are owned by company insiders. Comparatively, 0.2% of Kraft Heinz shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Profitability
This table compares Rocky Mountain Chocolate Factory and Kraft Heinz’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% |
| Kraft Heinz | -13.64% | 7.10% | 3.60% |
Analyst Ratings
This is a summary of current ratings and target prices for Rocky Mountain Chocolate Factory and Kraft Heinz, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Rocky Mountain Chocolate Factory | 1 | 0 | 0 | 0 | 1.00 |
| Kraft Heinz | 5 | 11 | 1 | 0 | 1.76 |
Kraft Heinz has a consensus target price of $23.88, suggesting a potential downside of 0.50%. Given Kraft Heinz’s stronger consensus rating and higher probable upside, analysts clearly believe Kraft Heinz is more favorable than Rocky Mountain Chocolate Factory.
Summary
Kraft Heinz beats Rocky Mountain Chocolate Factory on 9 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 Kraft Heinz
The Kraft Heinz Company, together with its subsidiaries, manufactures and markets food and beverage products in North America and internationally. Its products include condiments and sauces, cheese and dairy products, meals, meats, refreshment beverages, coffee, and other grocery products under the Kraft, Oscar Mayer, Heinz, Philadelphia, Lunchables, Velveeta, Ore-Ida, Maxwell House, Kool-Aid, Jell-O, Heinz, ABC, Master, Quero, Kraft, Golden Circle, Wattie's, Pudliszki, and Plasmon brands. It sells its products through its own sales organizations, as well as through independent brokers, agents, and distributors to chain, wholesale, cooperative, and independent grocery accounts; convenience, value, and club stores; pharmacies and drug stores; mass merchants; foodservice distributors; institutions, including hotels, restaurants, bakeries, hospitals, health care facilities, and government agencies; and online through various e-commerce platforms and retailers. The company was formerly known as H.J. Heinz Holding Corporation and changed its name to The Kraft Heinz Company in July 2015. The Kraft Heinz Company was founded in 1869 and is based in Pittsburgh, Pennsylvania.
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