Contrasting Axfood AB (publ) (OTCMKTS:AXFOF) and Sprouts Farmers Market (NASDAQ:SFM)

Axfood AB (publ) (OTCMKTS:AXFOF) and Sprouts Farmers Market (NASDAQ:SFM) are both consumer defensive companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, valuation, institutional ownership, earnings, profitability, risk and analyst recommendations.

Earnings & Valuation

This table compares Axfood AB (publ) and Sprouts Farmers Market’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Axfood AB (publ)	N/A	N/A	N/A	$20.44	1.19
Sprouts Farmers Market	$6.84 billion	1.23	$258.86 million	$2.90	28.82

Sprouts Farmers Market has higher revenue and earnings than Axfood AB (publ). Axfood AB (publ) is trading at a lower price-to-earnings ratio than Sprouts Farmers Market, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current ratings for Axfood AB (publ) and Sprouts Farmers Market, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Axfood AB (publ)	0	0	0	0	N/A
Sprouts Farmers Market	2	5	2	0	2.00

Sprouts Farmers Market has a consensus price target of $64.00, suggesting a potential downside of 23.42%. Given Sprouts Farmers Market’s higher possible upside, analysts clearly believe Sprouts Farmers Market is more favorable than Axfood AB (publ).

Profitability

This table compares Axfood AB (publ) and Sprouts Farmers Market’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Axfood AB (publ)	N/A	N/A	N/A
Sprouts Farmers Market	4.25%	26.77%	9.16%

Institutional and Insider Ownership

13.8% of Axfood AB (publ) shares are held by institutional investors. 1.1% of Sprouts Farmers Market shares are held by company 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.

Summary

Sprouts Farmers Market beats Axfood AB (publ) on 8 of the 10 factors compared between the two stocks.

About Axfood AB (publ)

Axfood AB (publ) engages in the food retail and wholesale businesses primarily in Sweden. It operates through four segments: Willys, Hemköp, Dagab, and Snabbgross. The company sells groceries through Willys, HANDLAR'N, Hemköp, and Eurocash store chains. It is also involved in the e-commerce business; and provision of private label products. In addition, it offers home delivery of meal kits under the Middagsfrid name, as well as operates Urban Deli, a combination of restaurant and market hall; Apohem, an online retail pharmacy; Matöppe, a personal grocery store and the retailer-owned mini-mart; Snabbgriss, a restaurant; and Tempo, a mini-mart format of retailer-owned stores. The company serves restaurants, fastfood operators, and cafés; and retailer-owned stores, mini-marts, and other convenience retailers. Axfood AB (publ) was founded in 1958 and is headquartered in Stockholm, Sweden. Axfood AB (publ) operates as a subsidiary of Axretail AB.

About Sprouts Farmers Market

Sprouts Farmers Market, Inc., together with its subsidiaries, engages in the retailing of fresh, natural, and organic food products under the Sprouts brand in the United States. It offers perishable product categories, including fresh produce, meat and meat alternatives, seafood, deli, bakery, floral, and dairy and dairy alternatives; and non-perishable product categories, such as grocery, vitamins and supplements, bulk items, frozen foods, beer and wine, and natural health and body care. Sprouts Farmers Market, Inc. was founded in 1943 and is headquartered in Phoenix, Arizona.