WallStSmart

Ingles Markets Incorporated (IMKTA)vsSprouts Farmers Market LLC (SFM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Sprouts Farmers Market LLC generates 63% more annual revenue ($8.81B vs $5.42B). SFM leads profitability with a 6.0% profit margin vs 1.8%. IMKTA appears more attractively valued with a PEG of 0.85. IMKTA earns a higher WallStSmart Score of 64/100 (C+).

IMKTA

Buy

64

out of 100

Grade: C+

Growth: 6.0Profit: 4.5Value: 10.0Quality: 9.0
Piotroski: 5/9Altman Z: 4.46

SFM

Buy

62

out of 100

Grade: C+

Growth: 7.3Profit: 7.0Value: 10.0Quality: 6.5
Piotroski: 3/9Altman Z: 3.14
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

IMKTAUndervalued (+63.0%)

Margin of Safety

+63.0%

Fair Value

$234.47

Current Price

$83.56

$150.91 discount

UndervaluedFair: $234.47Overvalued
SFMUndervalued (+65.9%)

Margin of Safety

+65.9%

Fair Value

$192.43

Current Price

$81.80

$110.63 discount

UndervaluedFair: $192.43Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

IMKTA5 strengths · Avg: 9.2/10
Price/BookValuation
1.0x10/10

Reasonable price relative to book value

EPS GrowthGrowth
70.1%10/10

Earnings expanding 70.1% YoY

Altman Z-ScoreHealth
4.4610/10

Safe zone — low bankruptcy risk

PEG RatioValuation
0.858/10

Growing faster than its price suggests

P/E RatioValuation
17.4x8/10

Attractively priced relative to earnings

SFM3 strengths · Avg: 9.3/10
Return on EquityProfitability
38.4%10/10

Every $100 of equity generates 38 in profit

Altman Z-ScoreHealth
3.1410/10

Safe zone — low bankruptcy risk

P/E RatioValuation
15.4x8/10

Attractively priced relative to earnings

Areas to Watch

IMKTA4 concerns · Avg: 3.0/10
Market CapQuality
$1.66B3/10

Smaller company, higher risk/reward

Return on EquityProfitability
5.9%3/10

ROE of 5.9% — below average capital efficiency

Profit MarginProfitability
1.8%3/10

1.8% margin — thin

Operating MarginProfitability
3.2%3/10

Operating margin of 3.2%

SFM3 concerns · Avg: 3.0/10
Profit MarginProfitability
6.0%3/10

6.0% margin — thin

Debt/EquityHealth
1.393/10

Elevated debt levels

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

Bull Case : IMKTA

The strongest argument for IMKTA centers on Price/Book, EPS Growth, Altman Z-Score. PEG of 0.85 suggests the stock is reasonably priced for its growth.

Bull Case : SFM

The strongest argument for SFM centers on Return on Equity, Altman Z-Score, P/E Ratio. PEG of 1.13 suggests the stock is reasonably priced for its growth.

Bear Case : IMKTA

The primary concerns for IMKTA are Market Cap, Return on Equity, Profit Margin. Thin 1.8% margins leave little buffer for downturns.

Bear Case : SFM

The primary concerns for SFM are Profit Margin, Debt/Equity, Piotroski F-Score.

Key Dynamics to Monitor

SFM carries more volatility with a beta of 0.70 — expect wider price swings.

SFM is growing revenue faster at 7.6% — sustainability is the question.

SFM generates stronger free cash flow (65M), providing more financial flexibility.

Monitor GROCERY STORES industry trends, competitive dynamics, and regulatory changes.

Bottom Line

IMKTA scores higher overall (64/100 vs 62/100). SFM offers better value entry with a 65.9% margin of safety. Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Ingles Markets Incorporated

CONSUMER DEFENSIVE · GROCERY STORES · USA

Ingles Markets, Incorporated operates a chain of supermarkets in the southeastern United States. The company is headquartered in Asheville, North Carolina.

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Sprouts Farmers Market LLC

CONSUMER DEFENSIVE · GROCERY STORES · USA

Sprouts Farmers Market, Inc. offers fresh, natural and organic food products in the United States. The company is headquartered in Phoenix, Arizona.

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