Rocky Mountain Chocolate Factory (NASDAQ:RMCF – Get Free Report) and Noodles & Company (NASDAQ:NDLS – Get Free Report) are both small-cap retail/wholesale companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, risk, dividends, institutional ownership, analyst recommendations, profitability and earnings.
Risk & Volatility
Rocky Mountain Chocolate Factory has a beta of 0.7, suggesting that its share price is 30% less volatile than the S&P 500. Comparatively, Noodles & Company has a beta of 1.43, suggesting that its share price is 43% more volatile than the S&P 500.
Institutional & Insider Ownership
50.3% of Rocky Mountain Chocolate Factory shares are held by institutional investors. Comparatively, 65.7% of Noodles & Company shares are held by institutional investors. 42.2% of Rocky Mountain Chocolate Factory shares are held by insiders. Comparatively, 2.8% of Noodles & Company shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Rocky Mountain Chocolate Factory | $29.58 million | 0.67 | -$6.12 million | ($0.52) | -4.10 |
| Noodles & Company | $495.09 million | 0.15 | -$42.57 million | ($6.38) | -1.97 |
Rocky Mountain Chocolate Factory has higher earnings, but lower revenue than Noodles & Company. Rocky Mountain Chocolate Factory is trading at a lower price-to-earnings ratio than Noodles & Company, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of current ratings and recommmendations for Rocky Mountain Chocolate Factory and Noodles & Company, 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 |
| Noodles & Company | 1 | 1 | 0 | 0 | 1.50 |
Profitability
This table compares Rocky Mountain Chocolate Factory and Noodles & Company’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Rocky Mountain Chocolate Factory | -13.62% | -62.48% | -19.16% |
| Noodles & Company | -7.46% | N/A | -5.63% |
Summary
Noodles & Company beats Rocky Mountain Chocolate Factory on 8 of the 12 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 Noodles & Company
Noodles & Co. engages in the business of development and operation of fast-casual restaurants that serve noodle and pasta dishes, soups, salads, and appetizers. The firm also offers pleasant dining, pick-up, and delivery experiences by quickly preparing fresh food with friendly service. The company was founded by Aaron Kennedy in 1995 and is headquartered in Broomfield, CO.
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