Rocky Mountain Chocolate Factory (NASDAQ:RMCF) and Cosan (NYSE:CSAN) are both retail/wholesale companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, risk, valuation, analyst recommendations, earnings, dividends and profitability.
Analyst Ratings
This is a summary of current recommendations and price targets for Rocky Mountain Chocolate Factory and Cosan, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Rocky Mountain Chocolate Factory | 0 | 0 | 0 | 0 | N/A |
| Cosan | 0 | 1 | 0 | 0 | 2.00 |
Volatility & Risk
Rocky Mountain Chocolate Factory has a beta of 1.14, indicating that its stock price is 14% more volatile than the S&P 500. Comparatively, Cosan has a beta of 1.15, indicating that its stock price is 15% more volatile than the S&P 500.
Earnings & Valuation
This table compares Rocky Mountain Chocolate Factory and Cosan’s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Rocky Mountain Chocolate Factory | $31.85 million | 1.18 | $1.03 million | N/A | N/A |
| Cosan | $5.01 billion | N/A | $333.56 million | N/A | N/A |
Cosan has higher revenue and earnings than Rocky Mountain Chocolate Factory.
Profitability
This table compares Rocky Mountain Chocolate Factory and Cosan’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Rocky Mountain Chocolate Factory | -15.36% | -21.15% | -12.56% |
| Cosan | 8.50% | 11.14% | 2.58% |
Insider & Institutional Ownership
26.4% of Rocky Mountain Chocolate Factory shares are owned by institutional investors. 18.6% 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 is poised for long-term growth.
Summary
Cosan beats Rocky Mountain Chocolate Factory on 6 of the 8 factors compared between the two stocks.
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 500 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. As of March 31, 2020, it operated two company-owned, 98 licensee-owned, and 237 franchised Rocky Mountain Chocolate Factory stores operating in 37 states in Canada, South Korea, Panama, and the Philippines; three company-owned, 59 franchised, and 25 licensed stores located in 25 states and Qatar; 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 brand names. The company has strategic alliance with Edible Arrangements, LLC and its affiliates to provide certain branded chocolate products. Rocky Mountain Chocolate Factory, Inc. was founded in 1981 and is headquartered in Durango, Colorado.
About Cosan
Cosan S.A., through its subsidiaries, primarily engages in the fuel distribution business in Brazil, Europe, Latin America, North America, Asia, and internationally. It operates through RaÃzen Energia, RaÃzen CombustÃveis, Gas and Energy, and Moove segments. The company's RaÃzen Energia segment produces and markets various products derived from sugar cane, including raw sugar, and anhydrous and hydrated ethanol. This segment also engages in activities related to energy cogeneration from sugarcane bagasse; and holds interests in companies involved in research and development on new technology. Its RaÃzen CombustÃveis segment distributes and markets fuels through a franchised network of service stations under the Shell brand. This segment also engages in the petroleum refining; operation of convenience stores; manufacture and sale of automotive and industrial lubricants; and production and sale of liquefied petroleum gas. The company's Gas and Energy segment distributes piped natural gas to customers in the industrial, residential, commercial, automotive, and cogeneration sectors; and engages in purchase and sale of electricity to other traders. Its Moove segment produces and distributes lubricants under the Mobil and Comma brands. The company was founded in 1936 and is headquartered in São Paulo, Brazil.