Analyzing Safeway (SWY) and Sprouts Farmers Market (SFM)

Safeway (NYSE: SWY) and Sprouts Farmers Market (NASDAQ:SFM) are both mid-cap non-cyclical consumer goods & services companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, valuation, profitability, institutional ownership, risk, analyst recommendations and earnings.


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

Net Margins Return on Equity Return on Assets
Safeway -0.26% -1.66% -0.69%
Sprouts Farmers Market 3.40% 21.81% 9.07%

Risk & Volatility

Safeway has a beta of 1.09, meaning that its stock price is 9% more volatile than the S&P 500. Comparatively, Sprouts Farmers Market has a beta of 0.84, meaning that its stock price is 16% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings for Safeway and Sprouts Farmers Market, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Safeway 0 0 0 0 N/A
Sprouts Farmers Market 2 7 12 0 2.48

Sprouts Farmers Market has a consensus target price of $26.94, indicating a potential upside of 6.78%. Given Sprouts Farmers Market’s higher probable upside, analysts clearly believe Sprouts Farmers Market is more favorable than Safeway.

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Safeway N/A N/A N/A $0.12 292.50
Sprouts Farmers Market $4.66 billion 0.72 $158.44 million $1.14 22.13

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

Institutional & Insider Ownership

91.0% of Sprouts Farmers Market shares are held by institutional investors. 2.6% of Sprouts Farmers Market shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.


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

Safeway Company Profile

Safeway Inc., is an food and drug retail company. The Company owns and operates Operating Company, LLC, an online grocery channel doing business under the names and Blackhawk, a majority-owned subsidiary of Safeway, is a prepaid payment network utilizing proprietary technology to offer gift cards, other prepaid products and payment services. Blackhawk’s payment network supports its three primary constituents: consumers who purchase the products and services Blackhawk offers, content providers who offer branded products that are redeemable for goods and services, and distribution partners who sell the products. Blackhawk’s product offerings include gift cards, prepaid telecom products and prepaid financial services products, including general purpose reloadable cards and Blackhawk’s reload network.

Sprouts Farmers Market Company Profile

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 Safeway Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Safeway and related companies with's FREE daily email newsletter.

Leave a Reply