WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Kroger Company generates 1558% more annual revenue ($149.33B vs $9.00B). SFM leads profitability with a 5.6% profit margin vs 0.7%. KR appears more attractively valued with a PEG of 0.59. SFM earns a higher WallStSmart Score of 58/100 (C).

KR

Buy

55

out of 100

Grade: C

Growth: 4.0Profit: 5.5Value: 6.7Quality: 5.0
Piotroski: 5/9Altman Z: 3.88

SFM

Buy

58

out of 100

Grade: C

Growth: 5.3Profit: 7.0Value: 6.3Quality: 5.0
Piotroski: 3/9Altman Z: 3.14
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

KRUndervalued (+20.4%)

Margin of Safety

+20.4%

Fair Value

$75.02

Current Price

$58.54

$16.48 discount

UndervaluedFair: $75.02Overvalued

Intrinsic value data unavailable for SFM.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

KR2 strengths · Avg: 9.0/10
Altman Z-ScoreHealth
3.8810/10

Safe zone — low bankruptcy risk

PEG RatioValuation
0.598/10

Growing faster than its price suggests

SFM3 strengths · Avg: 9.3/10
Return on EquityProfitability
35.4%10/10

Every $100 of equity generates 35 in profit

Altman Z-ScoreHealth
3.1410/10

Safe zone — low bankruptcy risk

P/E RatioValuation
13.5x8/10

Attractively priced relative to earnings

Areas to Watch

KR4 concerns · Avg: 3.5/10
P/E RatioValuation
32.4x4/10

Premium valuation, high expectations priced in

Revenue GrowthGrowth
2.0%4/10

2.0% revenue growth

Profit MarginProfitability
0.7%3/10

0.7% margin — thin

Operating MarginProfitability
3.0%3/10

Operating margin of 3.0%

SFM4 concerns · Avg: 3.5/10
Revenue GrowthGrowth
4.7%4/10

4.7% revenue growth

EPS GrowthGrowth
1.5%4/10

1.5% earnings growth

Profit MarginProfitability
5.6%3/10

5.6% margin — thin

Debt/EquityHealth
1.403/10

Elevated debt levels

Comparative Analysis Report

WallStSmart Research

Bull Case : KR

The strongest argument for KR centers on Altman Z-Score, PEG Ratio. PEG of 0.59 suggests the stock is reasonably priced for its growth.

Bull Case : SFM

The strongest argument for SFM centers on Return on Equity, Altman Z-Score, P/E Ratio. PEG of 1.49 suggests the stock is reasonably priced for its growth.

Bear Case : KR

The primary concerns for KR are P/E Ratio, Revenue Growth, Profit Margin. Debt-to-equity of 4.13 is elevated, increasing financial risk. Thin 0.7% margins leave little buffer for downturns.

Bear Case : SFM

The primary concerns for SFM are Revenue Growth, EPS Growth, Profit Margin.

Key Dynamics to Monitor

SFM carries more volatility with a beta of 0.67 — expect wider price swings.

SFM is growing revenue faster at 4.7% — sustainability is the question.

SFM generates stronger free cash flow (45M), providing more financial flexibility.

Monitor GROCERY STORES industry trends, competitive dynamics, and regulatory changes.

Bottom Line

SFM scores higher overall (58/100 vs 55/100). KR offers better value entry with a 20.4% margin of safety. 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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