Reviewing Sprouts Farmers Market (SFM) & The Competition

Sprouts Farmers Market (NASDAQ: SFM) is one of 22 public companies in the “Food Retail & Distribution” industry, but how does it contrast to its peers? We will compare Sprouts Farmers Market to related companies based on the strength of its risk, dividends, earnings, valuation, profitability, analyst recommendations and institutional ownership.

Insider & Institutional Ownership

87.7% of Sprouts Farmers Market shares are owned by institutional investors. Comparatively, 54.2% of shares of all “Food Retail & Distribution” companies are owned by institutional investors. 2.6% of Sprouts Farmers Market shares are owned by company insiders. Comparatively, 15.6% of shares of all “Food Retail & Distribution” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations 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 10 10 0 2.43
Sprouts Farmers Market Competitors 641 1324 1363 21 2.23

Sprouts Farmers Market presently has a consensus price target of $25.13, indicating a potential upside of 40.13%. As a group, “Food Retail & Distribution” companies have a potential upside of 5.97%. Given Sprouts Farmers Market’s stronger consensus rating and higher probable upside, research analysts plainly believe Sprouts Farmers Market is more favorable than its peers.

Risk and Volatility

Sprouts Farmers Market has a beta of 0.54, suggesting that its stock price is 46% less volatile than the S&P 500. Comparatively, Sprouts Farmers Market’s peers have a beta of 0.94, suggesting that their average stock price is 6% less volatile than the S&P 500.

Valuation & Earnings

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

Gross Revenue EBITDA Price/Earnings Ratio
Sprouts Farmers Market $4.34 billion $295.71 million 19.92
Sprouts Farmers Market Competitors $22.59 billion $1.07 billion 31.75

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.

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 2.96% 18.79% 8.65%
Sprouts Farmers Market Competitors 0.84% 7.10% 4.20%

Summary

Sprouts Farmers Market beats its peers 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.

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

Leave a Reply