Bloomin’ Brands (NASDAQ:BLMN – 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 investment? We will contrast the two businesses based on the strength of their risk, profitability, valuation, analyst recommendations, dividends, earnings and institutional ownership.
Risk & Volatility
Bloomin’ Brands has a beta of 1.15, indicating that its stock price is 15% more volatile than the S&P 500. Comparatively, Rocky Mountain Chocolate Factory has a beta of 0.73, indicating that its stock price is 27% less volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for Bloomin’ Brands and Rocky Mountain Chocolate Factory, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Bloomin’ Brands | 1 | 8 | 0 | 0 | 1.89 |
| Rocky Mountain Chocolate Factory | 1 | 0 | 0 | 0 | 1.00 |
Earnings and Valuation
This table compares Bloomin’ Brands and Rocky Mountain Chocolate Factory”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Bloomin’ Brands | $3.96 billion | 0.13 | -$128.02 million | $0.10 | 61.20 |
| Rocky Mountain Chocolate Factory | $29.58 million | 0.80 | -$6.12 million | ($0.52) | -4.90 |
Rocky Mountain Chocolate Factory has lower revenue, but higher earnings than Bloomin’ Brands. Rocky Mountain Chocolate Factory is trading at a lower price-to-earnings ratio than Bloomin’ Brands, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
50.3% of Rocky Mountain Chocolate Factory shares are owned by institutional investors. 3.0% of Bloomin’ Brands shares are owned by company insiders. Comparatively, 42.2% 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 will outperform the market over the long term.
Profitability
This table compares Bloomin’ Brands and Rocky Mountain Chocolate Factory’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Bloomin’ Brands | 0.21% | 25.55% | 2.93% |
| Rocky Mountain Chocolate Factory | -13.62% | -62.48% | -19.16% |
Summary
Bloomin’ Brands beats Rocky Mountain Chocolate Factory on 9 of the 13 factors compared between the two stocks.
About Bloomin’ Brands
Bloomin’ Brands, Inc. engages in the acquisition, operation, design, and development of restaurant concepts. It operates through the U.S. and International geographical segments. The U.S. segment operates in the USA and Puerto Rico. The International segment operates in Brazil, South Korea, Hong Kong, and China. Its brands include Outback Steakhouse, Carrabba’s Italian Grill, Bonefish Grill, and Fleming’s Prime Steakhouse and Wine Bar. The company was founded by Chris Thomas Sullivan, Robert Danker Basham and John Timothy Gannon in March 1988 and is headquartered in Tampa, FL.
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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