WallStSmart

Rocky Mountain Chocolate Factory (RMCF)vsTootsie Roll Industries Inc (TR)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Tootsie Roll Industries Inc generates 2372% more annual revenue ($732.52M vs $29.64M). TR leads profitability with a 13.7% profit margin vs -13.6%. TR earns a higher WallStSmart Score of 49/100 (D+).

RMCF

Avoid

25

out of 100

Grade: F

Growth: 2.7Profit: 2.5Value: 6.7Quality: 4.0
Piotroski: 3/9Altman Z: 0.59

TR

Hold

49

out of 100

Grade: D+

Growth: 5.3Profit: 6.5Value: 4.0Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

RMCFUndervalued (+59.7%)

Margin of Safety

+59.7%

Fair Value

$6.80

Current Price

$2.54

$4.26 discount

UndervaluedFair: $6.80Overvalued
TRUndervalued (+5.9%)

Margin of Safety

+5.9%

Fair Value

$42.52

Current Price

$42.50

$0.02 discount

UndervaluedFair: $42.52Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

RMCF0 strengths · Avg: 0/10

No standout strengths identified

TR1 strengths · Avg: 8.0/10
EPS GrowthGrowth
28.4%8/10

Earnings expanding 28.4% YoY

Areas to Watch

RMCF4 concerns · Avg: 3.0/10
Market CapQuality
$24.83M3/10

Smaller company, higher risk/reward

Operating MarginProfitability
1.1%3/10

Operating margin of 1.1%

Debt/EquityHealth
1.543/10

Elevated debt levels

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

TR3 concerns · Avg: 3.3/10
P/E RatioValuation
32.1x4/10

Premium valuation, high expectations priced in

Revenue GrowthGrowth
1.5%4/10

1.5% revenue growth

PEG RatioValuation
3.432/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull Case : RMCF

RMCF has a balanced fundamental profile.

Bull Case : TR

The strongest argument for TR centers on EPS Growth.

Bear Case : RMCF

The primary concerns for RMCF are Market Cap, Operating Margin, Debt/Equity. Debt-to-equity of 1.54 is elevated, increasing financial risk.

Bear Case : TR

The primary concerns for TR are P/E Ratio, Revenue Growth, PEG Ratio.

Key Dynamics to Monitor

RMCF profiles as a turnaround stock while TR is a value play — different risk/reward profiles.

RMCF carries more volatility with a beta of 0.70 — expect wider price swings.

TR is growing revenue faster at 1.5% — sustainability is the question.

TR generates stronger free cash flow (61M), providing more financial flexibility.

Bottom Line

TR scores higher overall (49/100 vs 25/100). RMCF offers better value entry with a 59.7% margin of safety. Both earn "Hold" and "Avoid" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Rocky Mountain Chocolate Factory

CONSUMER DEFENSIVE · CONFECTIONERS · USA

Rocky Mountain Chocolate Factory, Inc., is a confectionery franchisor, manufacturer and retail operator. The company is headquartered in Durango, Colorado.

Tootsie Roll Industries Inc

CONSUMER DEFENSIVE · CONFECTIONERS · USA

Tootsie Roll Industries, Inc., manufactures and sells confectionery products primarily in the United States, Canada, Mexico, and internationally. The company is headquartered in Chicago, Illinois.

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