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

Earnings and Valuation

This table compares The Fresh Market and SpartanNash’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
The Fresh Market N/A N/A N/A $1.36 20.96
SpartanNash $7.73 billion 0.11 $56.82 million ($2.02) -11.16

SpartanNash has higher revenue and earnings than The Fresh Market. SpartanNash is trading at a lower price-to-earnings ratio than The Fresh Market, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares The Fresh Market and SpartanNash’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%
SpartanNash -0.93% 10.35% 4.00%

Dividends

SpartanNash pays an annual dividend of $0.66 per share and has a dividend yield of 2.9%. The Fresh Market does not pay a dividend. SpartanNash pays out -32.7% of its earnings in the form of a dividend.

Institutional & Insider Ownership

86.5% of SpartanNash shares are held by institutional investors. 3.0% of SpartanNash shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings for The Fresh Market and SpartanNash, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
The Fresh Market 0 0 0 0 N/A
SpartanNash 1 4 0 0 1.80

SpartanNash has a consensus target price of $23.20, indicating a potential upside of 2.88%. Given SpartanNash’s higher probable upside, analysts clearly believe SpartanNash is more favorable than The Fresh Market.

Summary

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

About The Fresh Market

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.

About SpartanNash

SpartanNash Company is a multi-regional grocery distributor and grocery retailer. The Company’s core businesses include distributing grocery products to independent grocery retailers (independent retailers), select national retailers, its corporate owned retail stores, and the United States military commissaries. The Company operates through three segments: Food Distribution, Military and Retail. The Food Distribution segment provides a range of nationally branded and private brand grocery products and perishable food products to independent retailers, food service distributors and its corporate owned retail stores. The Military segment contracts with manufacturers to distribute a range of grocery products primarily to military commissaries and exchanges located in the United States, the District of Columbia, Europe, Cuba, Puerto Rico, Bahrain and Egypt. As of December 31, 2016, the Retail segment operated 157 corporate owned retail stores in the Midwest and Great Lakes regions.

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