WallStSmart

Kroger Company (KR)vsSprouts Farmers Market LLC (SFM)

VS

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

Buy

55

out of 100

Grade: C

Growth: 7.3Profit: 6.5Value: 8.7Quality: 5.3
Piotroski: 3/9Altman Z: 3.79

SFM

Buy

62

out of 100

Grade: C+

Growth: 7.3Profit: 7.0Value: 10.0Quality: 6.5
Piotroski: 3/9Altman Z: 3.14
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

KRUndervalued (+4.7%)

Margin of Safety

+4.7%

Fair Value

$72.07

Current Price

$73.20

$1.13 discount

UndervaluedFair: $72.07Overvalued
SFMUndervalued (+65.9%)

Margin of Safety

+65.9%

Fair Value

$192.43

Current Price

$81.80

$110.63 discount

UndervaluedFair: $192.43Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

KR5 strengths · Avg: 9.6/10
Profit MarginProfitability
69.0%10/10

Keeps 69 of every $100 in revenue as profit

Revenue GrowthGrowth
120.0%10/10

Revenue surging 120.0% year-over-year

EPS GrowthGrowth
50.1%10/10

Earnings expanding 50.1% YoY

Altman Z-ScoreHealth
3.7910/10

Safe zone — low bankruptcy risk

Free Cash FlowQuality
$1.80B8/10

Generating 1.8B in free cash flow

SFM3 strengths · Avg: 9.3/10
Return on EquityProfitability
38.4%10/10

Every $100 of equity generates 38 in profit

Altman Z-ScoreHealth
3.1410/10

Safe zone — low bankruptcy risk

P/E RatioValuation
15.4x8/10

Attractively priced relative to earnings

Areas to Watch

KR4 concerns · Avg: 3.0/10
PEG RatioValuation
1.774/10

Expensive relative to growth rate

Operating MarginProfitability
3.5%3/10

Operating margin of 3.5%

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

P/E RatioValuation
48.4x2/10

Premium valuation, high expectations priced in

SFM3 concerns · Avg: 3.0/10
Profit MarginProfitability
6.0%3/10

6.0% margin — thin

Debt/EquityHealth
1.393/10

Elevated debt levels

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

Bull 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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