Sprouts Farmers Market (NASDAQ:SFM – Get Free Report) and Casey’s General Stores (NASDAQ:CASY – Get Free Report) are both consumer staples companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, valuation, analyst recommendations, risk, dividends, profitability and institutional ownership.
Risk and Volatility
Sprouts Farmers Market has a beta of 0.67, indicating that its stock price is 33% less volatile than the S&P 500. Comparatively, Casey’s General Stores has a beta of 0.59, indicating that its stock price is 41% less volatile than the S&P 500.
Insider and Institutional Ownership
85.6% of Casey’s General Stores shares are held by institutional investors. 1.3% of Sprouts Farmers Market shares are held by company insiders. Comparatively, 0.7% of Casey’s General Stores shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Earnings and Valuation
This table compares Sprouts Farmers Market and Casey’s General Stores”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Sprouts Farmers Market | $8.81 billion | 0.69 | $523.67 million | $5.22 | 12.55 |
| Casey’s General Stores | $17.56 billion | 1.46 | $714.45 million | $20.76 | 33.49 |
Casey’s General Stores has higher revenue and earnings than Sprouts Farmers Market. Sprouts Farmers Market is trading at a lower price-to-earnings ratio than Casey’s General Stores, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of current recommendations for Sprouts Farmers Market and Casey’s General Stores, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Sprouts Farmers Market | 1 | 6 | 7 | 0 | 2.43 |
| Casey’s General Stores | 0 | 5 | 16 | 0 | 2.76 |
Sprouts Farmers Market currently has a consensus price target of $88.92, indicating a potential upside of 35.73%. Casey’s General Stores has a consensus price target of $835.38, indicating a potential upside of 20.16%. Given Sprouts Farmers Market’s higher possible upside, equities analysts plainly believe Sprouts Farmers Market is more favorable than Casey’s General Stores.
Profitability
This table compares Sprouts Farmers Market and Casey’s General Stores’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Sprouts Farmers Market | 5.58% | 34.84% | 11.99% |
| Casey’s General Stores | 4.14% | 19.68% | 8.77% |
Summary
Casey’s General Stores beats Sprouts Farmers Market on 8 of the 14 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 Casey’s General Stores
Casey’s General Stores, Inc. engages in the provision of management and operation of convenience stores and gasoline stations. It provides self-service gasoline, a wide selection of grocery items, and an array of freshly prepared food items. The firm offers food, beverages, tobacco products, health and beauty aids, automotive products, and other non-food items. The company was founded by Donald F. Lamberti in 1968 and is headquartered in Ankeny, IA.
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