Analyzing Rocky Mountain Chocolate Factory (RMCF) and John B. Sanfilippo & Son (JBSS)

Rocky Mountain Chocolate Factory (NASDAQ: RMCF) and John B. Sanfilippo & Son (NASDAQ:JBSS) are both small-cap retail/wholesale companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, risk, analyst recommendations, profitability, dividends, earnings and valuation.

Dividends

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Rocky Mountain Chocolate Factory pays an annual dividend of $0.48 per share and has a dividend yield of 4.0%. John B. Sanfilippo & Son pays an annual dividend of $0.50 per share and has a dividend yield of 0.9%.

Profitability

This table compares Rocky Mountain Chocolate Factory and John B. Sanfilippo & Son’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Rocky Mountain Chocolate Factory 8.50% 16.75% 10.93%
John B. Sanfilippo & Son 3.68% 13.78% 7.68%

Risk and Volatility

Rocky Mountain Chocolate Factory has a beta of 0.68, indicating that its stock price is 32% less volatile than the S&P 500. Comparatively, John B. Sanfilippo & Son has a beta of 1, indicating that its stock price has a similar volatility profile to the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Rocky Mountain Chocolate Factory and John B. Sanfilippo & Son, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Rocky Mountain Chocolate Factory 0 0 0 0 N/A
John B. Sanfilippo & Son 0 1 0 0 2.00

John B. Sanfilippo & Son has a consensus price target of $70.00, indicating a potential upside of 19.86%. Given John B. Sanfilippo & Son’s higher possible upside, analysts clearly believe John B. Sanfilippo & Son is more favorable than Rocky Mountain Chocolate Factory.

Earnings and Valuation

This table compares Rocky Mountain Chocolate Factory and John B. Sanfilippo & Son’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Rocky Mountain Chocolate Factory $38.30 million 1.86 $3.45 million N/A N/A
John B. Sanfilippo & Son $846.64 million 0.78 $36.12 million N/A N/A

John B. Sanfilippo & Son has higher revenue and earnings than Rocky Mountain Chocolate Factory.

Insider & Institutional Ownership

40.3% of Rocky Mountain Chocolate Factory shares are owned by institutional investors. Comparatively, 69.7% of John B. Sanfilippo & Son shares are owned by institutional investors. 13.1% of Rocky Mountain Chocolate Factory shares are owned by company insiders. Comparatively, 22.1% of John B. Sanfilippo & Son shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

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 five segments, Franchising, Manufacturing, Retail Stores, U-Swirl Operations, and Other. The company produces approximately 350 chocolate candies and other confectionery products, including clusters, caramels, creams, 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. As of March 31, 2017, it operated 4 Company-owned, 83 licensee-owned, and 283 franchised Rocky Mountain Chocolate Factory stores operating in the United states, Canada, Japan, South Korea, the Philippines, and the United Arab Emirates; 5 Company-owned cafés, 105 franchised cafés, and 40 licensed locations located in the United states and Canada; and self-serve frozen yogurt cafés under the U-Swirl, Yogurtini, CherryBerry, Yogli Mogli Frozen Yogurt, Fuzzy Peach Frozen Yogurt, Let's Yo!, and Aspen Leaf Yogurt names. The company was founded in 1981 and is headquartered in Durango, Colorado.

About John B. Sanfilippo & Son

John B. Sanfilippo & Son, Inc., together with its subsidiaries, processes and distributes tree nuts and peanuts in the United States. It offers raw and processed nuts, including almonds, pecans, peanuts, black walnuts, English walnuts, cashews, macadamia nuts, pistachios, pine nuts, Brazil nuts, and filberts in various styles and seasonings. The company also offers peanut butter in various sizes and varieties; food and snack products, such as snack mixes, salad toppings, snacks, snack bites, trail mixes, dried fruit, and chocolate and yogurt coated products; baking ingredients; bulk food products; sunflower kernels, pepitas, almond butter, cashew butter, candy and confections, corn snacks, sesame sticks, and other sesame snack products; and various toppings for ice cream and yogurt. In addition, it operates a retail store. The company provides its products under the Fisher, Orchard Valley Harvest, and Sunshine Country brand names, as well as under various private brands. It serves retailers and wholesalers, and commercial ingredient and contract packaging customers through a network of independent brokers, distributors, and suppliers. The company also exports its products. John B. Sanfilippo & Son, Inc. was founded in 1959 and is headquartered in Elgin, Illinois.

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