Freshpet (NASDAQ:FRPT) & Rocky Mountain Chocolate Factory (NASDAQ:RMCF) Head-To-Head Survey

Freshpet (NASDAQ:FRPT) and Rocky Mountain Chocolate Factory (NASDAQ:RMCF) are both consumer staples companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, risk, analyst recommendations, profitability, earnings, institutional ownership and valuation.

Earnings and Valuation

This table compares Freshpet 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
Freshpet	$1.10 billion	3.01	$139.14 million	$3.80	17.76
Rocky Mountain Chocolate Factory	$27.07 million	0.30	-$4.56 million	($0.66)	-1.29

Freshpet has higher revenue and earnings than Rocky Mountain Chocolate Factory. Rocky Mountain Chocolate Factory is trading at a lower price-to-earnings ratio than Freshpet, indicating that it is currently the more affordable of the two stocks.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Freshpet	17.28%	5.97%	4.07%
Rocky Mountain Chocolate Factory	-22.25%	-130.90%	-30.50%

Insider and Institutional Ownership

50.3% of Rocky Mountain Chocolate Factory shares are owned by institutional investors. 4.3% of Freshpet shares are owned by company insiders. Comparatively, 25.2% 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 company is poised for long-term growth.

Volatility & Risk

Freshpet has a beta of 1.78, meaning that its stock price is 78% more volatile than the S&P 500. Comparatively, Rocky Mountain Chocolate Factory has a beta of 0.76, meaning that its stock price is 24% less volatile than the S&P 500.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Freshpet	1	8	9	0	2.44
Rocky Mountain Chocolate Factory	1	0	0	0	1.00

Freshpet currently has a consensus price target of $75.53, indicating a potential upside of 11.90%. Given Freshpet’s stronger consensus rating and higher possible upside, research analysts clearly believe Freshpet is more favorable than Rocky Mountain Chocolate Factory.

Summary

Freshpet beats Rocky Mountain Chocolate Factory on 12 of the 14 factors compared between the two stocks.

About Freshpet

Freshpet, Inc., together with its subsidiaries, manufactures, distributes, and markets natural fresh meals and treats for dogs and cats in the United States, Canada, and Europe. It sells dog food, cat food, and dog treats under the Freshpet brand name; and Dognation and Dog Joy labels through various classes of retail, including grocery, mass, club, pet specialty, and natural, as well as online. The company was incorporated in 2004 and is headquartered in Secaucus, New Jersey.

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.