J d Wetherspoon (OTCMKTS:JDWPY) and Rocky Mountain Chocolate Factory (NASDAQ:RMCF) Financial Contrast

Rocky Mountain Chocolate Factory (NASDAQ:RMCF) and J d Wetherspoon (OTCMKTS:JDWPY) are both small-cap retail/wholesale companies, but which is the superior business? We will compare the two companies based on the strength of their risk, profitability, dividends, institutional ownership, valuation, earnings and analyst recommendations.

Profitability

This table compares Rocky Mountain Chocolate Factory and J d Wetherspoon’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Rocky Mountain Chocolate Factory	-19.84%	-100.52%	-26.22%
J d Wetherspoon	N/A	N/A	N/A

Insider & Institutional Ownership

50.3% of Rocky Mountain Chocolate Factory shares are held by institutional investors. 25.2% of Rocky Mountain Chocolate Factory shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Volatility and Risk

Rocky Mountain Chocolate Factory has a beta of 0.7, indicating that its stock price is 30% less volatile than the S&P 500. Comparatively, J d Wetherspoon has a beta of 1.04, indicating that its stock price is 4% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Rocky Mountain Chocolate Factory and J d Wetherspoon, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rocky Mountain Chocolate Factory	1	0	0	0	1.00
J d Wetherspoon	1	0	0	0	1.00

Valuation & Earnings

This table compares Rocky Mountain Chocolate Factory and J d Wetherspoon”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rocky Mountain Chocolate Factory	$27.50 million	0.31	-$4.56 million	($0.61)	-1.50
J d Wetherspoon	$2.76 billion	0.37	$88.36 million	N/A	N/A

J d Wetherspoon has higher revenue and earnings than Rocky Mountain Chocolate Factory.

Summary

J d Wetherspoon beats Rocky Mountain Chocolate Factory on 7 of the 9 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 J d Wetherspoon

J D Wetherspoon plc owns and operates pubs and hotels in the United Kingdom and the Republic of Ireland. The company was founded in 1979 and is based in Watford, the United Kingdom.