Rocky Mountain Chocolate Factory, Inc. (RMCF) vs Tootsie Roll Industries, Inc. (TR)

Rocky Mountain Chocolate Factory, Inc. and Tootsie Roll Industries, Inc. are both Confectioners companies. Tootsie Roll Industries, Inc. is the larger, with a market value of $2.9B against $8.5M — 341.6× the size. Rocky Mountain Chocolate Factory, Inc. has negative trailing earnings, so its P/E is not meaningful; Tootsie Roll Industries, Inc. trades at 29.8×. Tootsie Roll Industries, Inc. grew revenue faster over the last twelve months: 1.65% against −7.81%. Tootsie Roll Industries, Inc. has the higher net margin (13.0% vs −19.8%) and the higher return on invested capital (6.74% vs −27.5%). Across the 19 metrics below, Tootsie Roll Industries, Inc. leads on 14 and Rocky Mountain Chocolate Factory, Inc. on 5.

Valuation

Metric RMCF TR Confectioners median
P/E n/m 29.77 —
P/S 0.31 3.90 2.07
P/B 2.06 3.01 —
Price to free cash flow n/m 35.79 —
EV/EBITDA n/m 27.45 —
EV/Sales 0.66 3.71 2.51
Earnings yield (67.03%) 3.36% 3.36%
Free cash flow yield (38.20%) 2.79% 2.79%

Profitability

Metric RMCF TR Confectioners median
Gross margin 23.07% 34.49% 31.15%
Operating margin (16.33%) 11.89% 11.22%
Net margin (19.84%) 12.99% 8.86%
Free cash flow margin (11.62%) 10.91% 7.79%
Return on equity (99.37%) 10.35% 10.35%
Return on assets (27.46%) 7.79% 4.94%
Return on invested capital (27.50%) 6.74% 6.31%

Growth

Metric RMCF TR Confectioners median
Revenue growth (TTM) (7.81%) 1.65% 1.65%
EPS growth (last fiscal year) 34.88% 15.66% (44.74%)
Revenue growth, 5-year CAGR 4.79% 9.23% 7.71%
Net income growth, 5-year CAGR 0.00% 11.14% 0.00%

Health

Metric RMCF TR Confectioners median
Debt to equity 1.59 0.00 0.72
Current ratio 1.13 2.89 1.13
Net debt to EBITDA (2.48) (1.54) 0.21

Dividend

Metric RMCF TR Confectioners median
Dividend yield — 0.93% —
Payout ratio — 0.28 —

Size

Metric RMCF TR Confectioners median
Market cap 8.49m 2.90b 2.90b

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