TH International (NASDAQ:THCH – Get Free Report) and Rocky Mountain Chocolate Factory (NASDAQ:RMCF – Get Free Report) are both small-cap retail/wholesale companies, but which is the better business? We will compare the two companies based on the strength of their valuation, dividends, profitability, institutional ownership, risk, analyst recommendations and earnings.
Volatility and Risk
TH International has a beta of 0.55, meaning that its share price is 45% less volatile than the S&P 500. Comparatively, Rocky Mountain Chocolate Factory has a beta of 0.71, meaning that its share price is 29% less volatile than the S&P 500.
Valuation and Earnings
This table compares TH International and Rocky Mountain Chocolate Factory”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| TH International | $190.59 million | 0.39 | -$57.32 million | ($1.43) | -1.58 |
| Rocky Mountain Chocolate Factory | $29.58 million | 0.42 | -$6.12 million | ($0.61) | -2.59 |
Rocky Mountain Chocolate Factory has lower revenue, but higher earnings than TH International. Rocky Mountain Chocolate Factory is trading at a lower price-to-earnings ratio than TH International, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
91.9% of TH International shares are owned by institutional investors. Comparatively, 50.3% of Rocky Mountain Chocolate Factory shares are owned by institutional investors. 42.2% of Rocky Mountain Chocolate Factory shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Profitability
This table compares TH International and Rocky Mountain Chocolate Factory’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| TH International | -25.22% | N/A | -17.98% |
| Rocky Mountain Chocolate Factory | -15.77% | -63.75% | -22.21% |
Analyst Recommendations
This is a summary of recent ratings for TH International and Rocky Mountain Chocolate Factory, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| TH International | 1 | 0 | 0 | 0 | 1.00 |
| Rocky Mountain Chocolate Factory | 1 | 0 | 0 | 0 | 1.00 |
Summary
Rocky Mountain Chocolate Factory beats TH International on 6 of the 11 factors compared between the two stocks.
About TH International
TH International Limited operates Tim Hortons coffee shops in mainland China, Hong Kong, and Macau. The company offers brewed tea, coffee, milk tea, lemonade, hot chocolate, and coffee drinks. It is also involved in franchise related business. The company is based in Shanghai, the People's Republic of China.
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.
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