WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Tootsie Roll Industries Inc generates 2575% more annual revenue ($735.61M vs $27.50M). TR leads profitability with a 13.6% profit margin vs -16.6%. TR earns a higher WallStSmart Score of 41/100 (D).

RMCF

Avoid

27

out of 100

Grade: F

Growth: 2.0Profit: 2.0Value: 6.7Quality: 3.5
Piotroski: 2/9Altman Z: 0.42

TR

Hold

41

out of 100

Grade: D

Growth: 3.3Profit: 6.0Value: 4.0Quality: 9.0
Piotroski: 5/9Altman Z: 3.03
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

RMCFUndervalued (+50.4%)

Margin of Safety

+50.4%

Fair Value

$5.52

Current Price

$1.68

$3.84 discount

UndervaluedFair: $5.52Overvalued
TRFair Value (-2.5%)

Margin of Safety

-2.5%

Fair Value

$39.03

Current Price

$36.20

$2.83 premium

UndervaluedFair: $39.03Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

RMCF1 strengths · Avg: 8.0/10
Price/BookValuation
3.0x8/10

Reasonable price relative to book value

TR3 strengths · Avg: 9.3/10
Debt/EquityHealth
0.0110/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
3.0310/10

Safe zone — low bankruptcy risk

Price/BookValuation
2.9x8/10

Reasonable price relative to book value

Areas to Watch

RMCF4 concerns · Avg: 2.8/10
Market CapQuality
$13.82M3/10

Smaller company, higher risk/reward

Debt/EquityHealth
1.513/10

Elevated debt levels

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Return on EquityProfitability
-67.2%2/10

ROE of -67.2% — below average capital efficiency

TR4 concerns · Avg: 3.0/10
P/E RatioValuation
29.2x4/10

Moderate valuation

Revenue GrowthGrowth
2.1%4/10

2.1% revenue growth

PEG RatioValuation
3.432/10

Expensive relative to growth rate

EPS GrowthGrowth
-2.1%2/10

Earnings declined 2.1%

Comparative Analysis Report

WallStSmart Research

Bull Case : RMCF

The strongest argument for RMCF centers on Price/Book.

Bull Case : TR

The strongest argument for TR centers on Debt/Equity, Altman Z-Score, Price/Book.

Bear Case : RMCF

The primary concerns for RMCF are Market Cap, Debt/Equity, Piotroski F-Score. Debt-to-equity of 1.51 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 0.61 — expect wider price swings.

TR is growing revenue faster at 2.1% — sustainability is the question.

TR generates stronger free cash flow (3M), providing more financial flexibility.

Bottom Line

TR scores higher overall (41/100 vs 27/100). RMCF offers better value entry with a 50.4% 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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