Analyzing Sprouts Farmers Market (NASDAQ:SFM) and Axfood AB (publ) (OTCMKTS:AXFOF)

Sprouts Farmers Market (NASDAQ:SFM) and Axfood AB (publ) (OTCMKTS:AXFOF) are both retail/wholesale companies, but which is the better stock? We will contrast the two companies based on the strength of their profitability, valuation, risk, analyst recommendations, institutional ownership, earnings and dividends.

Earnings & Valuation

This table compares Sprouts Farmers Market and Axfood AB (publ)’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sprouts Farmers Market	$6.84 billion	1.22	$258.86 million	$2.90	28.64
Axfood AB (publ)	N/A	N/A	N/A	$20.44	1.19

Sprouts Farmers Market has higher revenue and earnings than Axfood AB (publ). Axfood AB (publ) is trading at a lower price-to-earnings ratio than Sprouts Farmers Market, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Sprouts Farmers Market and Axfood AB (publ)’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sprouts Farmers Market	4.25%	26.77%	9.16%
Axfood AB (publ)	N/A	N/A	N/A

Institutional and Insider Ownership

13.8% of Axfood AB (publ) shares are held by institutional investors. 1.1% of Sprouts Farmers Market shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and target prices for Sprouts Farmers Market and Axfood AB (publ), as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sprouts Farmers Market	2	5	2	0	2.00
Axfood AB (publ)	0	0	0	0	N/A

Sprouts Farmers Market presently has a consensus price target of $57.88, suggesting a potential downside of 30.33%. Given Sprouts Farmers Market’s higher probable upside, equities research analysts plainly believe Sprouts Farmers Market is more favorable than Axfood AB (publ).

Summary

Sprouts Farmers Market beats Axfood AB (publ) on 8 of the 10 factors compared between the two stocks.

About Sprouts Farmers Market

Sprouts Farmers Market, Inc., together with its subsidiaries, engages in the retailing of fresh, natural, and organic food products under the Sprouts brand in the United States. It offers perishable product categories, including fresh produce, meat and meat alternatives, seafood, deli, bakery, floral, and dairy and dairy alternatives; and non-perishable product categories, such as grocery, vitamins and supplements, bulk items, frozen foods, beer and wine, and natural health and body care. Sprouts Farmers Market, Inc. was founded in 1943 and is headquartered in Phoenix, Arizona.

About Axfood AB (publ)

Axfood AB (publ) engages in the food retail and wholesale businesses primarily in Sweden. It operates through four segments: Willys, Hemköp, Dagab, and Snabbgross. The company sells groceries through Willys, HANDLAR'N, Hemköp, and Eurocash store chains. It is also involved in the e-commerce business; and provision of private label products. In addition, it offers home delivery of meal kits under the Middagsfrid name, as well as operates Urban Deli, a combination of restaurant and market hall; Apohem, an online retail pharmacy; Matöppe, a personal grocery store and the retailer-owned mini-mart; Snabbgriss, a restaurant; and Tempo, a mini-mart format of retailer-owned stores. The company serves restaurants, fastfood operators, and cafés; and retailer-owned stores, mini-marts, and other convenience retailers. Axfood AB (publ) was founded in 1958 and is headquartered in Stockholm, Sweden. Axfood AB (publ) operates as a subsidiary of Axretail AB.