WallStSmart

Sprouts Farmers Market LLC (SFM)vsWalmart Inc. Common Stock (WMT)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Walmart Inc. Common Stock generates 7998% more annual revenue ($713.16B vs $8.81B). SFM leads profitability with a 6.0% profit margin vs 3.1%. SFM appears more attractively valued with a PEG of 1.14. SFM earns a higher WallStSmart Score of 62/100 (C+).

SFM

Buy

62

out of 100

Grade: C+

Growth: 7.3Profit: 7.0Value: 8.0Quality: 5.0
Piotroski: 3/9Altman Z: 3.14

WMT

Hold

43

out of 100

Grade: D

Growth: 4.7Profit: 5.5Value: 2.7Quality: 6.0
Piotroski: 4/9Altman Z: 3.62
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

SFMUndervalued (+65.9%)

Margin of Safety

+65.9%

Fair Value

$192.43

Current Price

$77.40

$115.03 discount

UndervaluedFair: $192.43Overvalued
WMTSignificantly Overvalued (-562.1%)

Margin of Safety

-562.1%

Fair Value

$18.56

Current Price

$122.89

$104.33 premium

UndervaluedFair: $18.56Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

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
14.6x8/10

Attractively priced relative to earnings

WMT4 strengths · Avg: 9.3/10
Market CapQuality
$979.73B10/10

Mega-cap, among the largest globally

Altman Z-ScoreHealth
3.6210/10

Safe zone — low bankruptcy risk

Return on EquityProfitability
21.8%9/10

Every $100 of equity generates 22 in profit

Free Cash FlowQuality
$6.10B8/10

Generating 6.1B in free cash flow

Areas to Watch

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

WMT4 concerns · Avg: 3.0/10
Price/BookValuation
9.8x4/10

Trading at 9.8x book value

Profit MarginProfitability
3.1%3/10

3.1% margin — thin

Operating MarginProfitability
4.6%3/10

Operating margin of 4.6%

PEG RatioValuation
4.462/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull Case : SFM

The strongest argument for SFM centers on Return on Equity, Altman Z-Score, P/E Ratio. PEG of 1.14 suggests the stock is reasonably priced for its growth.

Bull Case : WMT

The strongest argument for WMT centers on Market Cap, Altman Z-Score, Return on Equity.

Bear Case : SFM

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

Bear Case : WMT

The primary concerns for WMT are Price/Book, Profit Margin, Operating Margin. A P/E of 45.0x leaves little room for execution misses. Thin 3.1% margins leave little buffer for downturns.

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.

WMT generates stronger free cash flow (6.1B), providing more financial flexibility.

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

Bottom Line

SFM scores higher overall (62/100 vs 43/100). Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

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

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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Walmart Inc. Common Stock

CONSUMER DEFENSIVE · DISCOUNT STORES · USA

Walmart Inc. is an American multinational retail corporation that operates a chain of hypermarkets, discount department stores, and grocery stores from the United States, headquartered in Bentonville, Arkansas. It also owns and operates Sam's Club retail warehouses.

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