Comparing Sprouts Farmers Market (NASDAQ:SFM) and Hf Foods Group (NASDAQ:HFFG)

Hf Foods Group (NASDAQ:HFFG) and Sprouts Farmers Market (NASDAQ:SFM) are both consumer staples companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, valuation, risk, dividends, profitability and analyst recommendations.

Institutional & Insider Ownership

24.0% of Hf Foods Group shares are owned by institutional investors. 2.1% of Hf Foods Group shares are owned by company insiders. Comparatively, 1.3% of Sprouts Farmers Market shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Hf Foods Group and Sprouts Farmers Market”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hf Foods Group	$1.23 billion	0.07	-$38.84 million	($0.65)	-2.32
Sprouts Farmers Market	$8.81 billion	0.70	$523.67 million	$5.22	12.63

Sprouts Farmers Market has higher revenue and earnings than Hf Foods Group. Hf Foods Group 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.

Profitability

This table compares Hf Foods Group and Sprouts Farmers Market’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hf Foods Group	-2.77%	7.24%	2.77%
Sprouts Farmers Market	5.58%	34.84%	11.99%

Risk & Volatility

Hf Foods Group has a beta of 0.63, meaning that its stock price is 37% less volatile than the S&P 500. Comparatively, Sprouts Farmers Market has a beta of 0.67, meaning that its stock price is 33% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Hf Foods Group and Sprouts Farmers Market, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hf Foods Group	1	0	2	0	2.33
Sprouts Farmers Market	1	6	7	0	2.43

Hf Foods Group presently has a consensus price target of $5.50, suggesting a potential upside of 264.24%. Sprouts Farmers Market has a consensus price target of $87.92, suggesting a potential upside of 33.39%. Given Hf Foods Group’s higher probable upside, equities research analysts clearly believe Hf Foods Group is more favorable than Sprouts Farmers Market.

Summary

Sprouts Farmers Market beats Hf Foods Group on 11 of the 14 factors compared between the two stocks.

About Hf Foods Group

HF Foods Group Inc., through its subsidiaries, markets and distributes Asian specialty food, seafood, fresh produce, frozen and dry food, and non-food products to Asian and Chinese restaurants, and other foodservice customers in the United States. The company offers seafood, including lobsters, shrimp, crabs, scallops, and fish; Asian specialty food items, including noodles, rice, dried mushrooms and beans, sauces and seasonings, and spring rolls, as well as canned products, such as preserved vegetables, bamboo shoots, and water chestnuts; and meat and poultry products, including beef, pork, chicken, and duck. It also provides fresh produce products, such as vegetables and fruits; commodities comprising oil, flour, sugar, and salt; and packaging and other items including take-out accessories. HF Foods Group Inc. is headquartered in Las Vegas, Nevada.

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.