Kroger Company (KR)vsSprouts Farmers Market LLC (SFM)
KR
Kroger Company
$73.20
-0.76%
CONSUMER DEFENSIVE · Cap: $45.74B
SFM
Sprouts Farmers Market LLC
$81.80
-3.22%
CONSUMER DEFENSIVE · Cap: $7.96B
Smart Verdict
WallStSmart Research — data-driven comparison
Kroger Company generates 1577% more annual revenue ($147.64B vs $8.81B). KR leads profitability with a 69.0% profit margin vs 6.0%. SFM appears more attractively valued with a PEG of 1.13. SFM earns a higher WallStSmart Score of 62/100 (C+).
KR
Buy55
out of 100
Grade: C
SFM
Buy62
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+4.7%
Fair Value
$72.07
Current Price
$73.20
$1.13 discount
Margin of Safety
+65.9%
Fair Value
$192.43
Current Price
$81.80
$110.63 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Keeps 69 of every $100 in revenue as profit
Revenue surging 120.0% year-over-year
Earnings expanding 50.1% YoY
Safe zone — low bankruptcy risk
Generating 1.8B in free cash flow
Every $100 of equity generates 38 in profit
Safe zone — low bankruptcy risk
Attractively priced relative to earnings
Areas to Watch
Expensive relative to growth rate
Operating margin of 3.5%
Weak financial health signals
Premium valuation, high expectations priced in
6.0% margin — thin
Elevated debt levels
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : KR
The strongest argument for KR centers on Profit Margin, Revenue Growth, EPS Growth. Profitability is solid with margins at 69.0% and operating margin at 3.5%. Revenue growth of 120.0% demonstrates continued momentum.
Bull Case : SFM
The strongest argument for SFM centers on Return on Equity, Altman Z-Score, P/E Ratio. PEG of 1.13 suggests the stock is reasonably priced for its growth.
Bear Case : KR
The primary concerns for KR are PEG Ratio, Operating Margin, Piotroski F-Score. A P/E of 48.4x leaves little room for execution misses.
Bear Case : SFM
The primary concerns for SFM are Profit Margin, Debt/Equity, Piotroski F-Score.
Key Dynamics to Monitor
KR profiles as a growth stock while SFM is a value play — different risk/reward profiles.
SFM carries more volatility with a beta of 0.70 — expect wider price swings.
KR is growing revenue faster at 120.0% — sustainability is the question.
KR generates stronger free cash flow (1.8B), providing more financial flexibility.
Bottom Line
SFM scores higher overall (62/100 vs 55/100). Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Kroger Company
CONSUMER DEFENSIVE · GROCERY STORES · USA
The Kroger Company, or simply Kroger, is an American retail company founded by Bernard Kroger in 1883 in Cincinnati, Ohio.
Sprouts Farmers Market LLC
CONSUMER DEFENSIVE · GROCERY STORES · USA
Sprouts Farmers Market, Inc. offers fresh, natural and organic food products in the United States. The company is headquartered in Phoenix, Arizona.
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