Albertsons Companies, Inc. (ACI) vs Sprouts Farmers Market, Inc. (SFM)

Albertsons Companies, Inc. and Sprouts Farmers Market, Inc. are both Grocery Stores companies. Albertsons Companies, Inc. and Sprouts Farmers Market, Inc. are of similar size ($6.1B and $5.8B). Sprouts Farmers Market, Inc. trades at the lower P/E: 11.9× against 146×. Sprouts Farmers Market, Inc. grew revenue faster over the last twelve months: 7.20% against 2.75%. Sprouts Farmers Market, Inc. has the higher net margin (5.58% vs 0.08%) and the higher return on invested capital (30.2% vs 3.23%). Across the 22 metrics below, Sprouts Farmers Market, Inc. leads on 16 and Albertsons Companies, Inc. on 6.

Valuation

Metric ACI SFM Grocery Stores median
P/E 145.88 11.88 14.37
P/S 0.07 0.65 0.26
P/B 3.58 3.91 1.73
Price to free cash flow 9.30 16.45 11.51
EV/EBITDA 4.57 5.88 6.40
EV/Sales 0.18 0.65 0.33
Earnings yield 0.69% 8.42% 6.14%
Free cash flow yield 10.75% 6.08% 7.48%

Profitability

Metric ACI SFM Grocery Stores median
Gross margin 27.04% 38.71% 27.60%
Operating margin 0.65% 7.44% 1.94%
Net margin 0.08% 5.58% 1.60%
Free cash flow margin 0.75% 3.96% 1.64%
Return on equity 2.72% 35.20% 8.97%
Return on assets 0.25% 12.39% 3.10%
Return on invested capital 3.23% 30.17% 5.82%

Growth

Metric ACI SFM Grocery Stores median
Revenue growth (TTM) 2.75% 7.20% 3.48%
EPS growth (last fiscal year) (75.61%) 41.60% —
Revenue growth, 5-year CAGR 3.60% 6.36% 5.16%
Net income growth, 5-year CAGR (23.87%) 12.75% 0.00%

Health

Metric ACI SFM Grocery Stores median
Debt to equity 5.68 0.07 0.46
Current ratio 0.84 0.99 1.11
Net debt to EBITDA 2.60 (0.18) 0.46

Dividend

Metric ACI SFM Grocery Stores median
Dividend yield 2.16% — 2.20%
Payout ratio 0.22 0.00 0.13

Size

Metric ACI SFM Grocery Stores median
Market cap 5.82b 6.13b 1.19b

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