Critical Analysis: Whole Foods Market (WFM) and Whole Foods Market (NASDAQ:WFMI)

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

Valuation & Earnings

This table compares Whole Foods Market and Whole Foods Market’s top-line revenue, earnings per share (EPS) 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
Whole Foods Market $15.88 billion 0.84 $1.32 billion $1.22 34.22

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

Insider and Institutional Ownership

87.9% of Whole Foods Market shares are held by institutional investors. 1.3% of Whole Foods Market shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and price targets for Whole Foods Market and Whole Foods Market, as provided by MarketBeat.com.

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

Whole Foods Market has a consensus price target of $37.39, indicating a potential downside of 10.45%. Given Whole Foods Market’s higher probable upside, analysts plainly believe Whole Foods Market is more favorable than Whole Foods Market.

Dividends

Whole Foods Market pays an annual dividend of $0.72 per share and has a dividend yield of 1.7%. Whole Foods 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 Whole Foods Market and Whole Foods Market’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%
Whole Foods Market 2.44% 13.26% 6.84%

Summary

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

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.

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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