Mondelez International (NASDAQ: MDLZ) and Rocky Mountain Chocolate Factory (NASDAQ:RMCF) are both consumer staples companies, but which is the superior investment? We will compare the two companies based on the strength of their profitabiliy, dividends, risk, institutional ownership, valuation, analyst recommendations and earnings.
Institutional & Insider Ownership
76.7% of Mondelez International shares are owned by institutional investors. Comparatively, 38.5% of Rocky Mountain Chocolate Factory shares are owned by institutional investors. 3.6% of Mondelez International shares are owned by insiders. Comparatively, 15.3% of Rocky Mountain Chocolate Factory shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Mondelez International pays an annual dividend of $0.76 per share and has a dividend yield of 1.7%. Rocky Mountain Chocolate Factory pays an annual dividend of $0.48 per share and has a dividend yield of 4.1%. Mondelez International pays out 68.5% of its earnings in the form of a dividend. Rocky Mountain Chocolate Factory pays out 84.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
This table compares Mondelez International and Rocky Mountain Chocolate Factory’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Rocky Mountain Chocolate Factory||9.01%||18.35%||11.54%|
Valuation & Earnings
This table compares Mondelez International and Rocky Mountain Chocolate Factory’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Mondelez International||$25.88 billion||2.65||$4.31 billion||$1.11||40.71|
|Rocky Mountain Chocolate Factory||$38.30 million||1.79||$6.87 million||$0.57||20.49|
Mondelez International has higher revenue and earnings than Rocky Mountain Chocolate Factory. Rocky Mountain Chocolate Factory is trading at a lower price-to-earnings ratio than Mondelez International, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent recommendations and price targets for Mondelez International and Rocky Mountain Chocolate Factory, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Rocky Mountain Chocolate Factory||0||2||0||0||2.00|
Mondelez International presently has a consensus target price of $49.47, indicating a potential upside of 9.46%. Rocky Mountain Chocolate Factory has a consensus target price of $8.75, indicating a potential downside of 25.09%. Given Mondelez International’s stronger consensus rating and higher probable upside, research analysts clearly believe Mondelez International is more favorable than Rocky Mountain Chocolate Factory.
Volatility and Risk
Mondelez International has a beta of 1.17, suggesting that its stock price is 17% more volatile than the S&P 500. Comparatively, Rocky Mountain Chocolate Factory has a beta of 0.94, suggesting that its stock price is 6% less volatile than the S&P 500.
Mondelez International beats Rocky Mountain Chocolate Factory on 12 of the 17 factors compared between the two stocks.
Mondelez International Company Profile
Mondelez International, Inc. is a snack company. The Company manufactures and markets snack food and beverage products for consumers. It operates through four segments: Latin America, Asia, Middle East, and Africa (AMEA), Europe and North America. As of December 31, 2016, its brands spanned five product categories: Biscuits (including cookies, crackers and salted snacks); Chocolate; Gum and candy; Beverages (including coffee and powdered beverages), and Cheese and grocery. Itsportfolio includes various snack brands, including Nabisco, Oreo, LU and belVita biscuits; Cadbury, Milka, Cadbury Dairy Milk and Toblerone chocolate; Trident gum; Halls candy, and Tang powdered beverages. The Company sells its products to supermarket chains, wholesalers, supercenters, club stores, mass merchandisers, distributors, convenience stores, gasoline stations, drug stores, value stores and retail food outlets. As of December 31, 2016, it sold its products to consumers in approximately 165 countries.
Rocky Mountain Chocolate Factory Company Profile
Rocky Mountain Chocolate Factory, Inc. is an international franchisor, confectionery manufacturer and retail operator. The Company’s subsidiary, U-Swirl International, Inc. (U-Swirl), franchises and operates soft-serve frozen yogurt stores. The Company operates through five segments: Franchising, Manufacturing, Retail Stores, U-Swirl operations and Other. The Company manufactures a range of chocolate candies and other confectionery products. The Company’s franchised/license system of retail stores features chocolate, frozen yogurt and other confectionary products. The Company also sells its candy in selected locations outside of its system of retail stores and licenses the use of its brand with certain consumer products. The Company’s products include a range of clusters, caramels, creams, mints and truffles. Its individual stores also offer over 15 fudges and other products prepared in the store. The Company uses chocolate, nut meats and other ingredients in its candies.
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