Reviewing Sprouts Farmers Market (SFM) and The Competition

Sprouts Farmers Market (NASDAQ:SFM) is one of 149 public companies in the “Consumer Staples Distribution & Retail” industry, but how does it compare to its peers? We will compare Sprouts Farmers Market to related companies based on the strength of its dividends, risk, profitability, institutional ownership, valuation, earnings and analyst recommendations.

Insider and Institutional Ownership

45.0% of shares of all “Consumer Staples Distribution & Retail” companies are owned by institutional investors. 1.3% of Sprouts Farmers Market shares are owned by company insiders. Comparatively, 19.7% of shares of all “Consumer Staples Distribution & Retail” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Sprouts Farmers Market and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sprouts Farmers Market	1	6	7	0	2.43
Sprouts Farmers Market Competitors	2235	8248	10024	455	2.41

Sprouts Farmers Market currently has a consensus target price of $87.92, suggesting a potential upside of 41.80%. As a group, “Consumer Staples Distribution & Retail” companies have a potential upside of 61.86%. Given Sprouts Farmers Market’s peers higher probable upside, analysts plainly believe Sprouts Farmers Market has less favorable growth aspects than its peers.

Earnings & Valuation

This table compares Sprouts Farmers Market and its peers revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Sprouts Farmers Market	$8.81 billion	$523.67 million	11.88
Sprouts Farmers Market Competitors	$35.04 billion	$846.03 million	15.83

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

Volatility and Risk

Sprouts Farmers Market has a beta of 0.67, indicating that its stock price is 33% less volatile than the S&P 500. Comparatively, Sprouts Farmers Market’s peers have a beta of 0.43, indicating that their average stock price is 57% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Sprouts Farmers Market	5.58%	34.84%	11.99%
Sprouts Farmers Market Competitors	-25.67%	1.91%	2.62%

Summary

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

About Sprouts Farmers Market

Sprouts Farmers Market, Inc., together with its subsidiaries, engages in the retailing of fresh, natural, and organic food products under the Sprouts brand in the United States. It offers perishable product categories, including fresh produce, meat and meat alternatives, seafood, deli, bakery, floral, and dairy and dairy alternatives; and non-perishable product categories, such as grocery, vitamins and supplements, bulk items, frozen foods, beer and wine, and natural health and body care. Sprouts Farmers Market, Inc. was founded in 1943 and is headquartered in Phoenix, Arizona.