Sprouts Farmers Market (NASDAQ:SFM) and QKL Stores (OTCMKTS:QKLS) are both retail/wholesale companies, but which is the better stock? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, profitability, earnings, valuation, risk and dividends.

Profitability

This table compares Sprouts Farmers Market and QKL Stores’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sprouts Farmers Market 3.65% 25.85% 9.97%
QKL Stores N/A N/A N/A

Institutional and Insider Ownership

92.0% of Sprouts Farmers Market shares are owned by institutional investors. 1.8% of Sprouts Farmers Market shares are owned by insiders. Comparatively, 52.8% of QKL Stores shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Risk & Volatility

Sprouts Farmers Market has a beta of 0.74, indicating that its share price is 26% less volatile than the S&P 500. Comparatively, QKL Stores has a beta of 1.62, indicating that its share price is 62% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Sprouts Farmers Market and QKL Stores, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sprouts Farmers Market 1 10 7 0 2.33
QKL Stores 0 0 0 0 N/A

Sprouts Farmers Market currently has a consensus target price of $27.65, indicating a potential upside of 0.13%. Given Sprouts Farmers Market’s higher probable upside, research analysts plainly believe Sprouts Farmers Market is more favorable than QKL Stores.

Valuation & Earnings

This table compares Sprouts Farmers Market and QKL Stores’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Sprouts Farmers Market $4.66 billion 0.76 $158.44 million $1.01 27.34
QKL Stores $270.06 million 0.00 -$31.22 million N/A N/A

Sprouts Farmers Market has higher revenue and earnings than QKL Stores.

Summary

Sprouts Farmers Market beats QKL Stores on 9 of the 11 factors compared between the two stocks.

Sprouts Farmers Market Company Profile

Sprouts Farmers Market, Inc., a healthy grocery store, provides fresh, natural, and organic food products in the United States. Its stores offer fresh produce, meat and seafood, deli and baked goods, packaged groceries, vitamins and supplements, bulk foods, dairy and dairy alternatives, frozen foods, beer and wine, and natural body care and household items. As of December 31, 2017, it operated 285 stores in 15 states. Sprouts Farmers Market, Inc. was founded in 2002 and is based in Phoenix, Arizona.

QKL Stores Company Profile

QKL Stores Inc., together with its subsidiaries, operates supermarket chains in northeastern China and Inner Mongolia. Its supermarkets and hypermarkets sell grocery items, such as instant foods, canned foods, packaged rice and wheat powder, crackers and chips, rice and ground wheat, bottled water and beverages, and cigarettes, as well as non-food items, including cleaning products, cosmetics, and disposable razors. The company also sells fresh-food items comprising raw meat, cooked meats, seafood, noodles and pastas, milk, yogurt, eggs, and packaged dumplings, as well as bakery items comprising breads, buns, and other self-prepared foods. In addition, it offers other non-food items, such as clothing and shoes, books and stationery, bedding and home furnishings, office supplies, toys, sporting goods, and other items, as well as electronics and household use items, such as irons, electric shavers, hair dryers, and massage machines. Further, the company operates department stores that sell brand-name and luxury clothing and accessories, cosmetics, small electronics, jewelry, books, home furnishings, and bedding, as well as have a movie theater and a traditional beauty salon. As of December 31, 2015, the company operated 25 supermarkets, 16 hypermarkets, and 4 department stores. QKL Stores Inc. is headquartered in Daqing, the People's Republic of China.

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