Whole Foods Market (NASDAQ: WFMI) and SpartanNash (NASDAQ:SPTN) are both non-cyclical consumer goods & services companies, but which is the superior stock? We will compare the two businesses based on the strength of their earnings, risk, valuation, profitabiliy, dividends, analyst recommendations and institutional ownership.

Dividends

SpartanNash pays an annual dividend of $0.66 per share and has a dividend yield of 2.4%. Whole Foods Market does not pay a dividend. SpartanNash pays out 40.0% of its earnings in the form of a dividend.

Earnings and Valuation

This table compares Whole Foods Market and SpartanNash’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Whole Foods Market N/A N/A N/A N/A N/A
SpartanNash $7.86 billion 0.13 $225.80 million $1.65 16.35

SpartanNash has higher revenue and earnings than Whole Foods Market.

Profitability

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

Net Margins Return on Equity Return on Assets
Whole Foods Market 2.85% 13.51% 7.02%
SpartanNash 0.79% 10.03% 4.10%

Institutional and Insider Ownership

87.3% of SpartanNash shares are owned by institutional investors. 3.0% of SpartanNash shares are owned by 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 recommendations and price targets for Whole Foods Market and SpartanNash, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Whole Foods Market 0 0 0 0 N/A
SpartanNash 1 3 1 0 2.00

SpartanNash has a consensus price target of $26.50, suggesting a potential downside of 1.74%. Given SpartanNash’s higher probable upside, analysts clearly believe SpartanNash is more favorable than Whole Foods Market.

Summary

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

About Whole Foods Market

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.

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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