Smart & Final Stores (SFS) versus iFresh (IFMK) Critical Survey

Smart & Final Stores (NYSE:SFS) and iFresh (NASDAQ:IFMK) are both small-cap consumer staples companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, analyst recommendations, risk, valuation, institutional ownership, earnings and profitability.

Risk and Volatility

Smart & Final Stores has a beta of 1.35, meaning that its stock price is 35% more volatile than the S&P 500. Comparatively, iFresh has a beta of 3.53, meaning that its stock price is 253% more volatile than the S&P 500.

Profitability

This table compares Smart & Final Stores and iFresh’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Smart & Final Stores -2.91% 7.00% 1.59%
iFresh -5.09% -170.17% -13.40%

Earnings and Valuation

This table compares Smart & Final Stores and iFresh’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Smart & Final Stores $4.57 billion 0.10 -$138.91 million $0.34 17.12
iFresh $126.88 million 0.13 -$790,000.00 ($0.06) -16.67

iFresh has lower revenue, but higher earnings than Smart & Final Stores. iFresh is trading at a lower price-to-earnings ratio than Smart & Final Stores, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

94.1% of Smart & Final Stores shares are held by institutional investors. Comparatively, 0.8% of iFresh shares are held by institutional investors. 9.6% of Smart & Final Stores shares are held by company insiders. Comparatively, 80.7% of iFresh shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings for Smart & Final Stores and iFresh, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Smart & Final Stores 1 5 0 0 1.83
iFresh 0 0 0 0 N/A

Smart & Final Stores currently has a consensus price target of $6.92, suggesting a potential upside of 18.84%. Given Smart & Final Stores’ higher probable upside, research analysts plainly believe Smart & Final Stores is more favorable than iFresh.

Summary

Smart & Final Stores beats iFresh on 8 of the 12 factors compared between the two stocks.

About Smart & Final Stores

Smart & Final Stores, Inc. operates as a food retailer in the United States. It operates in two segments, Smart & Final, and Cash & Carry Smart Foodservice. The company's stores offer fresh perishables and everyday grocery items, such as produce, meat and deli, dairy and cheese, grocery, and beverage products, as well as paper and packaging, and restaurant equipment and janitorial supplies. It also provides various private label products under the First Street, Sun Harvest, Simply Value, La Romanella, Montecito, Iris, and Ambiance brands. The company sells its products to household and business customers; restaurants; caterers; and various other foodservice businesses, such as food trucks and coffee houses through vendors and suppliers. As of June 17, 2018, it operated 322 grocery and foodservice stores under the Smart & Final, Smart & Final Extra !, and Smart Foodservice Warehouse Stores names in California, Oregon, Washington, Arizona, Nevada, Idaho, Montana, and Utah, as well as 15 stores in Northwestern Mexico operated through a joint venture. Smart & Final Stores, Inc. was founded in 1871 and is based in Commerce, California.

About iFresh

iFresh Inc. operates a network of grocery supermarket chains in the north-eastern United States. The company's chains provide vegetables, seafood, meat, fruits, snacks, seasonings, and other products. It also distributes rice and rice products, and seasonings and spices, as well as assortment of noodles, frozen vegetables, frozen dumplings, and frozen seafood under the Family Elephant, Feiyan, Green Acre, Golden Smell, Redolent, Shuangdeng/Double Lantern, SeaStar, Huang Duan Xiang 1987, and I FRESH brands. In addition, the company offers its products through online shopping and delivery service for customers in suburban areas. It operates nine retail supermarkets; and two in-house wholesale businesses facilities. The company was founded in 1995 and is headquartered in Long Island City, New York.

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