Conagra Brands (NYSE:CAG – Get Free Report) and Rocky Mountain Chocolate Factory (NASDAQ:RMCF – Get Free Report) are both consumer staples companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, institutional ownership, earnings, valuation, profitability, analyst recommendations and risk.
Profitability
This table compares Conagra Brands and Rocky Mountain Chocolate Factory’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Conagra Brands | -16.95% | 11.46% | 4.51% |
| Rocky Mountain Chocolate Factory | -22.25% | -130.90% | -30.50% |
Volatility & Risk
Conagra Brands has a beta of 0.02, meaning that its stock price is 98% less volatile than the S&P 500. Comparatively, Rocky Mountain Chocolate Factory has a beta of 0.76, meaning that its stock price is 24% less volatile than the S&P 500.
Insider & Institutional Ownership
83.8% of Conagra Brands shares are owned by institutional investors. Comparatively, 50.3% of Rocky Mountain Chocolate Factory shares are owned by institutional investors. 0.3% of Conagra Brands shares are owned by company insiders. Comparatively, 25.2% of Rocky Mountain Chocolate Factory shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Analyst Recommendations
This is a summary of current ratings and target prices for Conagra Brands and Rocky Mountain Chocolate Factory, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Conagra Brands | 5 | 12 | 1 | 0 | 1.78 |
| Rocky Mountain Chocolate Factory | 1 | 0 | 0 | 0 | 1.00 |
Conagra Brands presently has a consensus price target of $14.07, suggesting a potential upside of 0.05%. Given Conagra Brands’ stronger consensus rating and higher possible upside, equities research analysts clearly believe Conagra Brands is more favorable than Rocky Mountain Chocolate Factory.
Valuation & Earnings
This table compares Conagra Brands and Rocky Mountain Chocolate Factory”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Conagra Brands | $11.28 billion | 0.59 | -$1.92 billion | ($3.98) | -3.53 |
| Rocky Mountain Chocolate Factory | $27.50 million | 0.29 | -$4.56 million | ($0.66) | -1.27 |
Rocky Mountain Chocolate Factory has lower revenue, but higher earnings than Conagra Brands. Conagra Brands 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.
Summary
Conagra Brands beats Rocky Mountain Chocolate Factory on 9 of the 14 factors compared between the two stocks.
About Conagra Brands
Conagra Brands, Inc., together with its subsidiaries, operates as a consumer packaged goods food company primarily in the United States. The company operates through Grocery & Snacks, Refrigerated & Frozen, International, and Foodservice segments. The Grocery & Snacks segment primarily offers shelf stable food products through various retail channels. The Refrigerated & Frozen segment provides temperature-controlled food products through various retail channels. The International segment offers food products in various temperature states through retail and foodservice channels outside of the United States. The Foodservice segment offers branded and customized food products, including meals, entrees, sauces, and various custom-manufactured culinary products packaged for restaurants and other foodservice establishments. The company sells its products under the Birds Eye, Marie Callender's, Duncan Hines, Healthy Choice, Slim Jim, Reddi-wip, Angie's, BOOMCHICKAPOP, Duke's, Earth Balance, Gardein, and Frontera brands. The company was incorporated in 1919 and is headquartered in Chicago, Illinois.
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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