The Kroger Co. (KR) vs Sprouts Farmers Market, Inc. (SFM)

The Kroger Co. and Sprouts Farmers Market, Inc. are both Grocery Stores companies. The Kroger Co. is the larger, with a market value of $34.8B against $6.1B — 5.7× the size. Sprouts Farmers Market, Inc. trades at the lower P/E: 11.9× against 31.8×. Sprouts Farmers Market, Inc. grew revenue faster over the last twelve months: 7.20% against −5.78%. Sprouts Farmers Market, Inc. has the higher net margin (5.58% vs 0.73%) and the higher return on invested capital (30.2% vs 6.47%). Across the 22 metrics below, Sprouts Farmers Market, Inc. leads on 18 and The Kroger Co. on 4.

Valuation

Metric KR SFM Grocery Stores median
P/E 31.75 11.88 14.37
P/S 0.24 0.65 0.26
P/B 6.09 3.91 1.73
Price to free cash flow 14.69 16.45 11.51
EV/EBITDA 8.46 5.88 6.40
EV/Sales 0.33 0.65 0.33
Earnings yield 3.15% 8.42% 6.14%
Free cash flow yield 6.81% 6.08% 7.48%

Profitability

Metric KR SFM Grocery Stores median
Gross margin 23.11% 38.71% 27.60%
Operating margin 1.39% 7.44% 1.94%
Net margin 0.73% 5.58% 1.60%
Free cash flow margin 1.62% 3.96% 1.64%
Return on equity 14.35% 35.20% 8.97%
Return on assets 2.11% 12.39% 3.10%
Return on invested capital 6.47% 30.17% 5.82%

Growth

Metric KR SFM Grocery Stores median
Revenue growth (TTM) (5.78%) 7.20% 3.48%
EPS growth (last fiscal year) (58.04%) 41.60% —
Revenue growth, 5-year CAGR 2.19% 6.36% 5.16%
Net income growth, 5-year CAGR (17.04%) 12.75% 0.00%

Health

Metric KR SFM Grocery Stores median
Debt to equity 2.91 0.07 0.46
Current ratio 0.70 0.99 1.11
Net debt to EBITDA 2.24 (0.18) 0.46

Dividend

Metric KR SFM Grocery Stores median
Dividend yield 2.40% — 2.20%
Payout ratio 0.46 0.00 0.13

Size

Metric KR SFM Grocery Stores median
Market cap 34.84b 6.13b 1.19b

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