Critical Analysis: Sprouts Farmers Market (SFM) and George Weston (WNGRF)

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

Risk & Volatility

Sprouts Farmers Market has a beta of 0.49, meaning that its share price is 51% less volatile than the S&P 500. Comparatively, George Weston has a beta of 0.93, meaning that its share price is 7% less volatile than the S&P 500.

Valuation & Earnings

This table compares Sprouts Farmers Market and George Weston’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Sprouts Farmers Market $5.21 billion 0.49 $158.54 million $1.29 16.11
George Weston $37.47 billion 0.31 $442.89 million N/A N/A

George Weston has higher revenue and earnings than Sprouts Farmers Market.

Dividends

George Weston pays an annual dividend of $1.56 per share and has a dividend yield of 2.1%. Sprouts Farmers Market does not pay a dividend.

Institutional & Insider Ownership

100.0% of Sprouts Farmers Market shares are held by institutional investors. Comparatively, 0.0% of George Weston shares are held by institutional investors. 0.7% of Sprouts Farmers Market shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Sprouts Farmers Market and George Weston’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sprouts Farmers Market 3.04% 27.02% 10.03%
George Weston 1.16% 6.38% 2.22%

Analyst Ratings

This is a summary of current ratings and price targets for Sprouts Farmers Market and George Weston, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sprouts Farmers Market 3 11 5 0 2.11
George Weston 0 0 0 0 N/A

Sprouts Farmers Market presently has a consensus target price of $25.98, indicating a potential upside of 25.01%. Given Sprouts Farmers Market’s higher possible upside, analysts plainly believe Sprouts Farmers Market is more favorable than George Weston.

Summary

Sprouts Farmers Market beats George Weston on 9 of the 13 factors compared between the two stocks.

Sprouts Farmers Market Company Profile

Sprouts Farmers Market, Inc., a healthy grocery store, provides fresh, natural, and organic food products in the United States. Its stores offer fresh produce, bulk foods, vitamins and supplements, packaged groceries, meat and seafood, baked goods, dairy products, frozen foods, beer and wine, natural body care and household items. As of February 18, 2019, it operated 318 stores in 19 states. Sprouts Farmers Market, Inc. was founded in 2002 and is based in Phoenix, Arizona.

George Weston Company Profile

George Weston Limited engages in the food processing and distribution business in Canada and internationally. The company operates through three segments: Weston Foods, Loblaw, and Choice Properties. The Weston Foods segment produces fresh, frozen, and specialty bakery products, such as breads, rolls, bagels, tortillas, cakes, donuts, pies, cookies, crackers, and other baked goods through national and regional supermarkets, wholesale and club stores, dollar stores, convenience store chains, food service distributors, and outlets. This segment also supplies control brand products to retailers and consumer food companies; ice cream cones and sandwich wafers to manufacturers in the frozen novelty category; and Girl Scout cookies. The Loblaw segment provides grocery, pharmacy, health and beauty, apparel, general merchandise, credit card, insurance brokerage, gift cards, and telecommunication services in approximately 2,300 corporate, franchised, and associate-owned locations. It operates retail drug stores under the Shoppers Drug Mart and Pharmaprix names that offer over-the-counter medications, health and beauty aids, cosmetics and fragrances, seasonal products, and household essentials; and Shoppers Home Health Care stores, which sells and services assisted-living devices, medical equipment, home-care products, and durable mobility equipment to institutional and retail customers. This segment also provides specialty drug distribution, pharmacy, and patient support services, as well as pharmaceutical products and services to long-term care facilities. The Choice Properties segment owns, develops, and manages retail and commercial real estate consisting of 435 properties primarily focusing on supermarket-anchored shopping centers, supermarkets, and other commercial properties; and industrial, office, and residential properties. The company was founded in 1882 and is headquartered in Toronto, Canada. George Weston Limited is a subsidiary of Wittington Investments, Ltd.

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