Analyzing Rocky Mountain Chocolate Factory (NASDAQ:RMCF) & Compass Group (OTCMKTS:CMPGY)

Compass Group (OTCMKTS:CMPGY) and Rocky Mountain Chocolate Factory (NASDAQ:RMCF) are both retail/wholesale companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, institutional ownership, dividends, analyst recommendations, profitability, risk and earnings.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Compass Group	N/A	N/A	N/A
Rocky Mountain Chocolate Factory	-13.62%	-62.48%	-19.16%

Analyst Ratings

This is a summary of recent ratings and target prices for Compass Group and Rocky Mountain Chocolate Factory, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Compass Group	0	0	2	2	3.50
Rocky Mountain Chocolate Factory	1	0	0	0	1.00

Earnings and Valuation

This table compares Compass Group and Rocky Mountain Chocolate Factory”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Compass Group	$46.07 billion	1.09	$1.87 billion	N/A	N/A
Rocky Mountain Chocolate Factory	$29.58 million	0.75	-$6.12 million	($0.52)	-4.60

Compass Group has higher revenue and earnings than Rocky Mountain Chocolate Factory.

Insider and Institutional Ownership

0.0% of Compass Group shares are held by institutional investors. Comparatively, 50.3% of Rocky Mountain Chocolate Factory shares are held by institutional investors. 0.0% of Compass Group shares are held by company insiders. Comparatively, 42.2% of Rocky Mountain Chocolate Factory shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Risk and Volatility

Compass Group has a beta of 0.68, meaning that its stock price is 32% less volatile than the S&P 500. Comparatively, Rocky Mountain Chocolate Factory has a beta of 0.73, meaning that its stock price is 27% less volatile than the S&P 500.

Summary

Compass Group beats Rocky Mountain Chocolate Factory on 9 of the 12 factors compared between the two stocks.

About Compass Group

Compass Group PLC operates as a food and support services company in North America, Europe, and internationally. The company offers support services, such as cleaning in hospitals; reception services at corporate headquarters; managing remote camps; grounds and facilities services at schools and universities; and others. It serves business and industry; healthcare and senior living market; education; sports and leisure; and defense, offshore, and remote sectors. Compass Group PLC was founded in 1941 and is based in Chertsey, the United Kingdom.

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.