Reviewing Rocky Mountain Chocolate Factory (NASDAQ:RMCF) and Lamb Weston (NYSE:LW)

Lamb Weston (NYSE:LWGet Free Report) and Rocky Mountain Chocolate Factory (NASDAQ:RMCFGet Free Report) are both consumer staples companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, dividends, analyst recommendations, valuation, profitability, risk and institutional ownership.

Valuation and Earnings

This table compares Lamb Weston and Rocky Mountain Chocolate Factory”s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Lamb Weston $6.61 billion 0.99 $290.00 million $2.08 22.89
Rocky Mountain Chocolate Factory $27.50 million 0.29 -$4.56 million ($0.61) -1.39

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

Profitability

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

Net Margins Return on Equity Return on Assets
Lamb Weston 4.39% 23.33% 5.72%
Rocky Mountain Chocolate Factory -19.84% -100.52% -26.22%

Risk and Volatility

Lamb Weston has a beta of 0.47, suggesting that its share price is 53% less volatile than the S&P 500. Comparatively, Rocky Mountain Chocolate Factory has a beta of 0.74, suggesting that its share price is 26% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Lamb Weston and Rocky Mountain Chocolate Factory, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Lamb Weston 0 11 3 0 2.21
Rocky Mountain Chocolate Factory 1 0 0 0 1.00

Lamb Weston presently has a consensus target price of $53.36, suggesting a potential upside of 12.09%. Given Lamb Weston’s stronger consensus rating and higher probable upside, analysts plainly believe Lamb Weston is more favorable than Rocky Mountain Chocolate Factory.

Insider and Institutional Ownership

89.6% of Lamb Weston shares are held by institutional investors. Comparatively, 50.3% of Rocky Mountain Chocolate Factory shares are held by institutional investors. 1.0% of Lamb Weston shares are held by company insiders. Comparatively, 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 company will outperform the market over the long term.

Summary

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

About Lamb Weston

(Get Free Report)

Lamb Weston Holdings, Inc. produces, distributes, and markets frozen potato products worldwide. The company operates through four segments: Global, Foodservice, Retail, and Other. It offers frozen potatoes, commercial ingredients, and appetizers under the Lamb Weston brand, as well as under various customer labels. The company also provides its products under its owned or licensed brands, such as Grown in Idaho and Alexia, and other licensed brands, as well as under retailers' own brands. In addition, it engages in the vegetable and dairy businesses. The company sells its products through a network of internal sales personnel and independent brokers, agents, and distributors to chain restaurants, wholesale, grocery, mass merchants, club and specialty retailers, businesses, educational institutions, independent restaurants, regional chain restaurants, and convenience stores. Lamb Weston Holdings, Inc. was incorporated in 1950 and is headquartered in Eagle, Idaho.

About Rocky Mountain Chocolate Factory

(Get Free Report)

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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