Brinker International (NYSE:EAT – Get Free Report) and Rocky Mountain Chocolate Factory (NASDAQ:RMCF – Get Free Report) are both retail/wholesale companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, valuation, profitability, analyst recommendations, risk, dividends and earnings.
Earnings & Valuation
This table compares Brinker International and Rocky Mountain Chocolate Factory”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Brinker International | $5.38 billion | 1.64 | $383.10 million | $10.20 | 20.16 |
| Rocky Mountain Chocolate Factory | $27.24 million | 0.30 | -$4.56 million | ($0.61) | -1.42 |
Profitability
This table compares Brinker International and Rocky Mountain Chocolate Factory’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Brinker International | 8.07% | 123.22% | 16.94% |
| Rocky Mountain Chocolate Factory | -19.84% | -100.52% | -26.22% |
Insider and Institutional Ownership
50.3% of Rocky Mountain Chocolate Factory shares are owned by institutional investors. 1.4% of Brinker International shares are owned by insiders. Comparatively, 25.2% of Rocky Mountain Chocolate Factory shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Analyst Ratings
This is a summary of current ratings for Brinker International and Rocky Mountain Chocolate Factory, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Brinker International | 0 | 7 | 14 | 1 | 2.73 |
| Rocky Mountain Chocolate Factory | 1 | 0 | 0 | 0 | 1.00 |
Brinker International presently has a consensus price target of $193.25, indicating a potential downside of 6.04%. Given Brinker International’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Brinker International is more favorable than Rocky Mountain Chocolate Factory.
Volatility & Risk
Brinker International has a beta of 1.24, indicating that its stock price is 24% more volatile than the S&P 500. Comparatively, Rocky Mountain Chocolate Factory has a beta of 0.7, indicating that its stock price is 30% less volatile than the S&P 500.
Summary
Brinker International beats Rocky Mountain Chocolate Factory on 13 of the 15 factors compared between the two stocks.
About Brinker International
Brinker International, Inc., together with its subsidiaries, engages in the ownership, development, operation, and franchising of casual dining restaurants in the United States and internationally. It operates and franchises Chili's Grill & Bar and Maggiano's Little Italy restaurant brands. The company also operates virtual brands, It's Just Wings. Brinker International, Inc. was founded in 1975 and is headquartered in Dallas, Texas.
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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