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Sprouts Farmers Market, Inc. and Weis Markets, Inc. Head to Head Compare



Sprouts Farmers Market Inc versus Weis Markets Inc Head to Head Compare

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This is a head to head compare of Sprouts Farmers Market Inc (NASDAQ:SFM) and Weis Markets Inc (NYSE:WMK) . We will compare the two companies on revenue growth, earnings, revenue per employee, operating margins, free cash flow and valuation. The head to head compare assigns 100 points in total.

Before we dive into the analysis, we will look at the stock returns for each company over the last three months, six months and the last year. The stock returns do not impact the head to head compare scores which are focused on the fundamentals of each company, but ultimately stock returns are are still a critical piece to a full analysis and compare.






Stock Returns
Symbol 3-Months 6-Months One-Year Fundamentals
SFM +21.1% +8.7% -8.7%
WMK -4.8% -5.0% +25.3%





Sprouts Farmers Market Inc has a higher fundamental rating than Weis Markets Inc which has an impact on the head-to-head comparison. The CML Star Rating is an objective, quantifiable measure of a company’s operating and financial condition.
The rating is computed by measuring numerous elements of the company’s current financial data and their associated changes over time.

Now, let’s dive into the two companies to compare them.


➤ Income Statement

First we turn to the income statement and compare revenue, earnings and revenue per employee for both companies. We note that simple revenue comparisons
do not impact the rating.

Sprouts Farmers Market Inc has larger revenue in the last year than Weis Markets Inc. Raw revenue comps do not affect the head to head rating.

Both SFM and WMK show positive earnings over the last year with the edge to SFM.

SFM generates larger revenue per employee ($180,000) than WMK ($151,000), but not enough to affect the comparison rating.

Revenue per Employee

($ Millions)



➤ Margins

Next we create some derived metrics to compare the the amount of revenue earned per dollar of expense and the amount of free cash flow earned per dollar of revenue. Margins are one of the fairest ways to compare companies since they remove some of the bias of large versus small numbers.

Sprouts Farmers Market Inc generates $1.04 in revenue for every $1 of expense, very similar to Weis Markets Inc’s $1.02.

Revenue per Dollar of Expense

SFM generates $0.02 in levered free cash flow for every $1 of revenue,
massively higher than WMK’s $0.01.

Free Cash Flow

per Dollar of Revenue



➤ Growth

Finally we compare the financial metrics related to growth: revenue growth rates and price to sales.

Both companies are growing revenue. Sprouts Farmers Market Inc is growing revenue massively faster than Weis Markets Inc.

For every $1 in revenue, the stock market prices in $0.69 in market cap for SFM and $0.56 in market cap for WMK.

Sprouts Farmers Market Inc (NASDAQ:SFM)
defeats
Weis Markets Inc (NYSE:WMK) : 87 to 13

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