Reviewing Rocky Mountain Chocolate Factory (NASDAQ:RMCF) & Latitude 360 (OTCMKTS:LATX)

Rocky Mountain Chocolate Factory (NASDAQ:RMCF) and Latitude 360 (OTCMKTS:LATX) are both retail/wholesale companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, institutional ownership, risk, dividends, valuation and earnings.

Profitability

This table compares Rocky Mountain Chocolate Factory and Latitude 360’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Rocky Mountain Chocolate Factory	-15.77%	-63.75%	-22.21%
Latitude 360	N/A	N/A	N/A

Insider and Institutional Ownership

50.3% of Rocky Mountain Chocolate Factory shares are held by institutional investors. 42.2% of Rocky Mountain Chocolate Factory shares are held by company insiders. Comparatively, 24.5% of Latitude 360 shares are held 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.

Earnings and Valuation

This table compares Rocky Mountain Chocolate Factory and Latitude 360″s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rocky Mountain Chocolate Factory	$29.99 million	0.37	-$6.12 million	($0.61)	-2.31
Latitude 360	N/A	N/A	N/A	N/A	N/A

Latitude 360 has lower revenue, but higher earnings than Rocky Mountain Chocolate Factory.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Rocky Mountain Chocolate Factory and Latitude 360, 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
Latitude 360	0	0	0	0	0.00

Given Latitude 360’s higher probable upside, analysts clearly believe Latitude 360 is more favorable than Rocky Mountain Chocolate Factory.

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 Latitude 360

Latitude 360, Inc. operates as a casual dining restaurant/entertainment company in the United States. The company plans, develops, constructs, and operates restaurant/entertainment venues. Its restaurant/entertainment venues feature a grille and bar; luxury bowling lanes; a dine-in movie theater with home theater-style seating; game room; a dine-in live performance theater; a HD sports theater; a bar with a dance floor and stage for the DJs and regional bands every weekend; and a luxury boutique cigar lounge. The company operates three restaurant/entertainment venues in Jacksonville, Florida, Pittsburgh, Pennsylvania, and Indianapolis, Indiana. Its restaurant/entertainment venues serve consumers and corporate clients. The company is headquartered in Jacksonville, Florida. On January 10, 2017, an involuntary petition for reorganization under Chapter 11 was filed against Latitude 360, Inc. in the U.S. Bankruptcy Court for the Middle District of Florida. On February 7, 2017, the involuntary petition was approved by the Court.