Sprouts Farmers Market (NASDAQ: SFM) is one of 23 publicly-traded companies in the “Food Retail & Distribution” industry, but how does it contrast to its competitors? We will compare Sprouts Farmers Market to similar businesses based on the strength of its analyst recommendations, valuation, risk, earnings, dividends, institutional ownership and profitability.

Profitability

This table compares Sprouts Farmers Market and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sprouts Farmers Market 3.46% 25.35% 10.85%
Sprouts Farmers Market Competitors 0.82% 33.07% 4.27%

Valuation and Earnings

This table compares Sprouts Farmers Market and its competitors top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Sprouts Farmers Market $4.34 billion $295.71 million 20.59
Sprouts Farmers Market Competitors $21.39 billion $989.23 million 39.13

Sprouts Farmers Market’s competitors have higher revenue and earnings than Sprouts Farmers Market. Sprouts Farmers Market is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Volatility and Risk

Sprouts Farmers Market has a beta of 0.54, indicating that its share price is 46% less volatile than the S&P 500. Comparatively, Sprouts Farmers Market’s competitors have a beta of 0.93, indicating that their average share price is 7% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations for Sprouts Farmers Market and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sprouts Farmers Market 1 10 9 0 2.40
Sprouts Farmers Market Competitors 644 1344 1391 22 2.23

Sprouts Farmers Market presently has a consensus target price of $25.27, indicating a potential upside of 36.36%. As a group, “Food Retail & Distribution” companies have a potential upside of 3.25%. Given Sprouts Farmers Market’s stronger consensus rating and higher possible upside, research analysts clearly believe Sprouts Farmers Market is more favorable than its competitors.

Insider & Institutional Ownership

88.0% of Sprouts Farmers Market shares are held by institutional investors. Comparatively, 56.2% of shares of all “Food Retail & Distribution” companies are held by institutional investors. 2.6% of Sprouts Farmers Market shares are held by insiders. Comparatively, 17.1% of shares of all “Food Retail & Distribution” companies are held by 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.

Summary

Sprouts Farmers Market competitors beat Sprouts Farmers Market on 7 of the 13 factors compared.

About Sprouts Farmers Market

Sprouts Farmers Market, Inc. is a food retailer. The Company operates as a grocery store that offers fresh, natural and organic food that includes fresh produce, bulk foods, vitamins and supplements, packaged groceries, meat and seafood, deli, baked goods, dairy products, frozen foods, body care and natural household items catering to consumers’ interest in health and wellness. As of February 23, 2017, the Company operated 256 stores in 14 states. The Company categorizes the varieties of products it sells as perishable and non-perishable. The perishable product categories include produce, meat, seafood, deli and bakery. Its non-perishable product categories include grocery, vitamins and supplements, bulk items, dairy and dairy alternatives, frozen foods, beer and wine, and natural health and body care.

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