Whole Foods Market (NASDAQ: WFM) is one of 17 public companies in the “Supermarkets & Convenience Stores” industry, but how does it compare to its peers? We will compare Whole Foods Market to related businesses based on the strength of its risk, dividends, institutional ownership, valuation, profitability, analyst recommendations and earnings.

Risk and Volatility

Whole Foods Market has a beta of 0.82, indicating that its share price is 18% less volatile than the S&P 500. Comparatively, Whole Foods Market’s peers have a beta of 0.88, indicating that their average share price is 12% less volatile than the S&P 500.

Insider and Institutional Ownership

79.2% of Whole Foods Market shares are owned by institutional investors. Comparatively, 49.3% of shares of all “Supermarkets & Convenience Stores” companies are owned by institutional investors. 1.3% of Whole Foods Market shares are owned by insiders. Comparatively, 30.1% of shares of all “Supermarkets & Convenience Stores” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Dividends

Whole Foods Market pays an annual dividend of $0.72 per share and has a dividend yield of 1.7%. Whole Foods Market pays out 59.5% of its earnings in the form of a dividend. As a group, “Supermarkets & Convenience Stores” companies pay a dividend yield of 1.9% and pay out 70.1% of their earnings in the form of a dividend.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Whole Foods Market and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Whole Foods Market 2 18 2 0 2.00
Whole Foods Market Competitors 294 1093 813 35 2.26

Whole Foods Market presently has a consensus target price of $37.76, indicating a potential downside of 10.06%. As a group, “Supermarkets & Convenience Stores” companies have a potential upside of 4.03%. Given Whole Foods Market’s peers stronger consensus rating and higher possible upside, analysts plainly believe Whole Foods Market has less favorable growth aspects than its peers.

Earnings & Valuation

This table compares Whole Foods Market and its peers gross revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Whole Foods Market N/A N/A 34.70
Whole Foods Market Competitors $65.09 billion $1.78 billion 467.50

Whole Foods Market’s peers have higher revenue and earnings than Whole Foods Market. Whole Foods 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 Whole Foods Market and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Whole Foods Market 2.85% 13.51% 7.02%
Whole Foods Market Competitors 0.87% 2.41% 1.13%

Summary

Whole Foods Market peers beat Whole Foods Market on 8 of the 13 factors compared.

About Whole Foods Market

Whole Foods Market, Inc. is engaged in the business of natural and organic foods supermarket. The Company operates approximately 456 stores in the United States, Canada and the United Kingdom. Its stores have an average size of approximately 39,000 square feet, and are supported by its distribution centers, bake house facilities, commissary kitchens, seafood-processing facilities, a produce procurement center, and a specialty coffee and tea procurement and roasting operation, among others. It offers over 30,000 organic stock keeping units (SKUs), covering various areas of its store, including produce, packaged goods, bulk, frozen, dairy, meat, bakery, prepared foods, coffee, tea, beer, wine, cheese, nutritional supplements, vitamins, body care, pet foods and household goods. The Company’s brands include 365 Everyday Value, Allegro Coffee, Whole Foods Market, Whole Paws, and Engine 2 Plant-Strong. It also offers approximately 400 temporary exclusives.

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