Whole Foods Market (NASDAQ: WFM) is one of 17 public companies in the “Supermarkets & Convenience Stores” industry, but how does it weigh in compared to its competitors? We will compare Whole Foods Market to similar companies based on the strength of its valuation, risk, analyst recommendations, profitability, dividends, earnings and institutional ownership.

Institutional & Insider Ownership

79.2% of Whole Foods Market shares are held by institutional investors. Comparatively, 49.3% of shares of all “Supermarkets & Convenience Stores” companies are held by institutional investors. 1.3% of Whole Foods Market shares are held by insiders. Comparatively, 30.1% of shares of all “Supermarkets & Convenience Stores” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Whole Foods Market and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Whole Foods Market 2 18 2 0 2.00
Whole Foods Market Competitors 290 1088 805 35 2.26

Whole Foods Market presently has a consensus price target of $37.76, suggesting a potential downside of 10.08%. As a group, “Supermarkets & Convenience Stores” companies have a potential upside of 5.95%. Given Whole Foods Market’s competitors stronger consensus rating and higher probable upside, analysts plainly believe Whole Foods Market has less favorable growth aspects than its competitors.

Earnings & Valuation

This table compares Whole Foods Market and its competitors top-line revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Whole Foods Market N/A N/A 34.71
Whole Foods Market Competitors $65.09 billion $1.78 billion 245.12

Whole Foods Market’s competitors have higher revenue and earnings than Whole Foods Market. Whole Foods 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.

Dividends

Whole Foods Market pays an annual dividend of $0.72 per share and has a dividend yield of 1.7%. Whole Foods Market pays out 59.5% of its earnings in the form of a dividend. As a group, “Supermarkets & Convenience Stores” companies pay a dividend yield of 1.9% and pay out 52.8% of their earnings in the form of a dividend. Whole Foods Market lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Profitability

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

Net Margins Return on Equity Return on Assets
Whole Foods Market 2.85% 13.51% 7.02%
Whole Foods Market Competitors 1.30% 8.21% 3.30%

Volatility and Risk

Whole Foods Market has a beta of 0.82, indicating that its stock price is 18% less volatile than the S&P 500. Comparatively, Whole Foods Market’s competitors have a beta of 0.88, indicating that their average stock price is 12% less volatile than the S&P 500.

Summary

Whole Foods Market competitors beat Whole Foods Market on 9 of the 13 factors compared.

About Whole Foods Market

Whole Foods Market, Inc. is engaged in the business of natural and organic foods supermarket. The Company operates approximately 456 stores in the United States, Canada and the United Kingdom. Its stores have an average size of approximately 39,000 square feet, and are supported by its distribution centers, bake house facilities, commissary kitchens, seafood-processing facilities, a produce procurement center, and a specialty coffee and tea procurement and roasting operation, among others. It offers over 30,000 organic stock keeping units (SKUs), covering various areas of its store, including produce, packaged goods, bulk, frozen, dairy, meat, bakery, prepared foods, coffee, tea, beer, wine, cheese, nutritional supplements, vitamins, body care, pet foods and household goods. The Company’s brands include 365 Everyday Value, Allegro Coffee, Whole Foods Market, Whole Paws, and Engine 2 Plant-Strong. It also offers approximately 400 temporary exclusives.

Receive News & Ratings for Whole Foods Market Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Whole Foods Market Inc. and related companies with Analyst Ratings Network's FREE daily email newsletter.