Sprouts Farmers Market (NASDAQ: SFM) is one of 23 publicly-traded companies in the “Food Retail & Distribution” industry, but how does it compare to its peers? We will compare Sprouts Farmers Market to similar companies based on the strength of its valuation, institutional ownership, profitability, dividends, earnings, risk and analyst recommendations.

Risk & Volatility

Sprouts Farmers Market has a beta of 0.54, indicating that its stock price is 46% less volatile than the S&P 500. Comparatively, Sprouts Farmers Market’s peers have a beta of 0.93, indicating that their average stock price is 7% less volatile than the S&P 500.

Insider & Institutional Ownership

88.0% of Sprouts Farmers Market shares are held by institutional investors. Comparatively, 62.7% of shares of all “Food Retail & Distribution” companies are held by institutional investors. 2.6% of Sprouts Farmers Market shares are held by company insiders. Comparatively, 19.2% of shares of all “Food Retail & Distribution” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Valuation and Earnings

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

Gross Revenue EBITDA Price/Earnings Ratio
Sprouts Farmers Market $4.34 billion $295.71 million 20.59
Sprouts Farmers Market Competitors $21.39 billion $989.23 million 38.90

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.

Analyst Ratings

This is a summary of recent recommendations for Sprouts Farmers Market and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sprouts Farmers Market 1 10 9 0 2.40
Sprouts Farmers Market Competitors 708 1439 1423 22 2.21

Sprouts Farmers Market presently has a consensus price target of $25.27, suggesting a potential upside of 36.36%. As a group, “Food Retail & Distribution” companies have a potential upside of 1.99%. Given Sprouts Farmers Market’s stronger consensus rating and higher possible upside, research analysts plainly believe Sprouts Farmers Market is more favorable than its peers.

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 0.82% 32.88% 4.20%

Summary

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

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.

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