Sprouts Farmers Market (NASDAQ:SFM) and Greggs (OTCMKTS:GGGSF) Critical Survey

Sprouts Farmers Market (NASDAQ:SFM) and Greggs (OTCMKTS:GGGSF) are both retail/wholesale companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, earnings, institutional ownership, dividends, risk, profitability and valuation.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Sprouts Farmers Market	3.79%	26.71%	9.02%
Greggs	N/A	N/A	N/A

Valuation and Earnings

This table compares Sprouts Farmers Market and Greggs’ gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sprouts Farmers Market	$6.84 billion	0.98	$258.86 million	$2.51	26.31
Greggs	N/A	N/A	N/A	$0.21	163.28

Sprouts Farmers Market has higher revenue and earnings than Greggs. Sprouts Farmers Market is trading at a lower price-to-earnings ratio than Greggs, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Sprouts Farmers Market and Greggs, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sprouts Farmers Market	0	5	2	0	2.29
Greggs	0	1	0	0	2.00

Sprouts Farmers Market currently has a consensus price target of $51.14, suggesting a potential downside of 22.55%. Given Sprouts Farmers Market’s stronger consensus rating and higher possible upside, research analysts plainly believe Sprouts Farmers Market is more favorable than Greggs.

Institutional & Insider Ownership

42.1% of Greggs shares are held by institutional investors. 1.1% of Sprouts Farmers Market shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

Sprouts Farmers Market beats Greggs on 9 of the 11 factors compared between the two stocks.

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.

About Greggs

Greggs plc operates as a food-on-the-go retailer in the United Kingdom. It offers a range of fresh and frozen bakery products, sandwiches, and drinks. The company sells products to franchise and wholesale partners for sale in their own outlets. It is also involved in the property holding, non-trading, and trustee businesses. The company also operates through its own shops. Greggs plc was founded in 1939 and is headquartered in Newcastle upon Tyne, the United Kingdom.