The Fresh Market (NASDAQ: TFM) and Whole Foods Market (NASDAQ:WFM) are both non-cyclical consumer goods & services companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, dividends, risk, valuation, profitability, analyst recommendations and institutional ownership.

Analyst Recommendations

This is a summary of current ratings and target prices for The Fresh Market and Whole Foods Market, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
The Fresh Market 0 0 0 0 N/A
Whole Foods Market 3 17 3 0 2.00

Whole Foods Market has a consensus target price of $37.39, indicating a potential downside of 10.53%. Given Whole Foods Market’s higher probable upside, analysts clearly believe Whole Foods Market is more favorable than The Fresh Market.

Valuation and Earnings

This table compares The Fresh Market and Whole Foods Market’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
The Fresh Market N/A N/A N/A N/A N/A
Whole Foods Market $15.88 billion 0.84 $1.32 billion $1.22 34.25

Whole Foods Market has higher revenue and earnings than The Fresh Market.

Insider & Institutional Ownership

86.3% of Whole Foods Market shares are held by institutional investors. 1.3% of Whole Foods Market shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Dividends

Whole Foods Market pays an annual dividend of $0.72 per share and has a dividend yield of 1.7%. The Fresh Market does not pay a dividend. Whole Foods Market pays out 59.0% of its earnings in the form of a dividend.

Profitability

This table compares The Fresh Market and Whole Foods Market’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
The Fresh Market 4.40% 24.25% 14.96%
Whole Foods Market 2.44% 13.26% 6.84%

Summary

Whole Foods Market beats The Fresh Market on 6 of the 10 factors compared between the two stocks.

The Fresh Market Company Profile

The Fresh Market, Inc. is a United States-based specialty grocery retailer. The Company focuses on perishable categories, which include meat, seafood, produce, deli, bakery, floral, sushi and prepared foods. Its non-perishable categories include traditional grocery, frozen and dairy products, as well as bulk, coffee and candy, and beer and wine. It is engaged in sale of items at its specialty food stores, which are located in over 30 states in the United States. It offers products, such as steaks, ground beef and whole roasts under meat department. The Company offers over 200 varieties of imported and domestic cheeses under deli department. It offers products in bulk format, such as nuts, dried fruits and snack mixes. Its floral offerings include roses, orchids and tulips. Its gift selection includes candles, and seasonal and holiday gift baskets. It offers everyday wines, wines from local vintners and its private-label wines. It offers beers from local, domestic and foreign brewers.

Whole Foods Market Company Profile

Whole Foods Market, Inc. is engaged in the business of natural and organic foods supermarket. The Company operates approximately 456 stores in the United States, Canada and the United Kingdom. Its stores have an average size of approximately 39,000 square feet, and are supported by its distribution centers, bake house facilities, commissary kitchens, seafood-processing facilities, a produce procurement center, and a specialty coffee and tea procurement and roasting operation, among others. It offers over 30,000 organic stock keeping units (SKUs), covering various areas of its store, including produce, packaged goods, bulk, frozen, dairy, meat, bakery, prepared foods, coffee, tea, beer, wine, cheese, nutritional supplements, vitamins, body care, pet foods and household goods. The Company’s brands include 365 Everyday Value, Allegro Coffee, Whole Foods Market, Whole Paws, and Engine 2 Plant-Strong. It also offers approximately 400 temporary exclusives.

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