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ACI vs. SFM: A Head-to-Head Stock Comparison

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Here’s a clear look at ACI and SFM, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Overview

ACI’s market capitalization stands at 12.63 billion USD, while SFM’s is 15.88 billion USD, indicating their market valuations are broadly comparable.

SFM carries a higher beta at 0.81, indicating it’s more sensitive to market moves, while ACI (beta: 0.31) exhibits greater stability.

SymbolACISFM
Company NameAlbertsons Companies, Inc.Sprouts Farmers Market, Inc.
CountryUSUS
SectorConsumer DefensiveConsumer Defensive
IndustryGrocery StoresGrocery Stores
CEOSusan D. MorrisJack L. Sinclair
Price21.93 USD162.29 USD
Market Cap12.63 billion USD15.88 billion USD
Beta0.310.81
ExchangeNYSENASDAQ
IPO DateJune 26, 2020August 1, 2013
ADRNoNo

Historical Performance

This chart compares the performance of ACI and SFM by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period.

Data is adjusted for dividends and splits.

ACI vs. SFM: Growth of a $10,000 investment over the past one year.

Profitability

Return on Equity

ACI

30.23%

Grocery Stores Industry

Max
41.83%
Q3
33.21%
Median
17.57%
Q1
4.85%
Min
-1.90%

ACI’s Return on Equity of 30.23% is on par with the norm for the Grocery Stores industry, indicating its profitability relative to shareholder equity is typical for the sector.

SFM

34.20%

Grocery Stores Industry

Max
41.83%
Q3
33.21%
Median
17.57%
Q1
4.85%
Min
-1.90%

In the upper quartile for the Grocery Stores industry, SFM’s Return on Equity of 34.20% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

ACI vs. SFM: A comparison of their ROE against the Grocery Stores industry benchmark.

Return on Invested Capital

ACI

6.91%

Grocery Stores Industry

Max
9.72%
Q3
6.86%
Median
5.47%
Q1
3.42%
Min
1.05%

In the upper quartile for the Grocery Stores industry, ACI’s Return on Invested Capital of 6.91% signifies a highly effective use of its capital to generate profits when compared to its peers.

SFM

14.95%

Grocery Stores Industry

Max
9.72%
Q3
6.86%
Median
5.47%
Q1
3.42%
Min
1.05%

SFM’s Return on Invested Capital of 14.95% is exceptionally high, placing it well beyond the typical range for the Grocery Stores industry. This demonstrates an outstanding ability to deploy capital efficiently and create significant value.

ACI vs. SFM: A comparison of their ROIC against the Grocery Stores industry benchmark.

Net Profit Margin

ACI

1.19%

Grocery Stores Industry

Max
5.53%
Q3
3.00%
Median
1.73%
Q1
1.16%
Min
-1.36%

ACI’s Net Profit Margin of 1.19% is aligned with the median group of its peers in the Grocery Stores industry. This indicates its ability to convert revenue into profit is typical for the sector.

SFM

5.53%

Grocery Stores Industry

Max
5.53%
Q3
3.00%
Median
1.73%
Q1
1.16%
Min
-1.36%

A Net Profit Margin of 5.53% places SFM in the upper quartile for the Grocery Stores industry, signifying strong profitability and more effective cost management than most of its peers.

ACI vs. SFM: A comparison of their Net Profit Margin against the Grocery Stores industry benchmark.

Operating Profit Margin

ACI

2.05%

Grocery Stores Industry

Max
4.30%
Q3
3.63%
Median
2.32%
Q1
1.32%
Min
0.87%

ACI’s Operating Profit Margin of 2.05% is around the midpoint for the Grocery Stores industry, indicating that its efficiency in managing core business operations is typical for the sector.

SFM

7.22%

Grocery Stores Industry

Max
4.30%
Q3
3.63%
Median
2.32%
Q1
1.32%
Min
0.87%

SFM’s Operating Profit Margin of 7.22% is exceptionally high, placing it well above the typical range for the Grocery Stores industry. This demonstrates outstanding efficiency in managing its core operations, which can be a result of strong pricing power or superior cost control.

ACI vs. SFM: A comparison of their Operating Margin against the Grocery Stores industry benchmark.

Profitability at a Glance

SymbolACISFM
Return on Equity (TTM)30.23%34.20%
Return on Assets (TTM)3.58%11.94%
Return on Invested Capital (TTM)6.91%14.95%
Net Profit Margin (TTM)1.19%5.53%
Operating Profit Margin (TTM)2.05%7.22%
Gross Profit Margin (TTM)27.06%38.47%

Financial Strength

Current Ratio

ACI

0.90

Grocery Stores Industry

Max
1.25
Q3
1.20
Median
1.00
Q1
0.95
Min
0.90

ACI’s Current Ratio of 0.90 falls into the lower quartile for the Grocery Stores industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.

SFM

0.95

Grocery Stores Industry

Max
1.25
Q3
1.20
Median
1.00
Q1
0.95
Min
0.90

SFM’s Current Ratio of 0.95 falls into the lower quartile for the Grocery Stores industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.

ACI vs. SFM: A comparison of their Current Ratio against the Grocery Stores industry benchmark.

Debt-to-Equity Ratio

ACI

4.19

Grocery Stores Industry

Max
4.19
Q3
2.56
Median
1.41
Q1
0.87
Min
0.12

ACI’s leverage is in the upper quartile of the Grocery Stores industry, with a Debt-to-Equity Ratio of 4.19. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.

SFM

1.33

Grocery Stores Industry

Max
4.19
Q3
2.56
Median
1.41
Q1
0.87
Min
0.12

SFM’s Debt-to-Equity Ratio of 1.33 is typical for the Grocery Stores industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

ACI vs. SFM: A comparison of their D/E Ratio against the Grocery Stores industry benchmark.

Interest Coverage Ratio

ACI

3.59

Grocery Stores Industry

Max
24.50
Q3
16.36
Median
5.08
Q1
3.73
Min
-0.63

In the lower quartile for the Grocery Stores industry, ACI’s Interest Coverage Ratio of 3.59 indicates a tighter cushion for servicing debt, suggesting less financial flexibility than many of its competitors.

SFM

194.58

Grocery Stores Industry

Max
24.50
Q3
16.36
Median
5.08
Q1
3.73
Min
-0.63

With an Interest Coverage Ratio of 194.58, SFM demonstrates a superior capacity to service its debt, placing it well above the typical range for the Grocery Stores industry. This stems from either robust earnings or a conservative debt load.

ACI vs. SFM: A comparison of their Interest Coverage against the Grocery Stores industry benchmark.

Financial Strength at a Glance

SymbolACISFM
Current Ratio (TTM)0.900.95
Quick Ratio (TTM)0.220.51
Debt-to-Equity Ratio (TTM)4.191.33
Debt-to-Asset Ratio (TTM)0.530.46
Net Debt-to-EBITDA Ratio (TTM)3.971.65
Interest Coverage Ratio (TTM)3.59194.58

Growth

The following charts compare key year-over-year (YoY) growth metrics for ACI and SFM. These metrics are based on the companies’ annual financial reports.

Revenue Growth

ACI vs. SFM: A comparison of their annual year-over-year Revenue Growth.

Earnings Per Share (EPS) Growth

ACI vs. SFM: A comparison of their annual year-over-year Earnings Per Share (EPS) Growth.

Free Cash Flow Growth

ACI vs. SFM: A comparison of their annual year-over-year Free Cash Flow Growth.

Dividend

Dividend Yield

ACI

2.46%

Grocery Stores Industry

Max
5.28%
Q3
2.38%
Median
1.48%
Q1
0.26%
Min
0.00%

With a Dividend Yield of 2.46%, ACI offers a more attractive income stream than most of its peers in the Grocery Stores industry, signaling a strong commitment to shareholder returns.

SFM

0.00%

Grocery Stores Industry

Max
5.28%
Q3
2.38%
Median
1.48%
Q1
0.26%
Min
0.00%

SFM currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.

ACI vs. SFM: A comparison of their Dividend Yield against the Grocery Stores industry benchmark.

Dividend Payout Ratio

ACI

30.78%

Grocery Stores Industry

Max
4,966.68%
Q3
30.78%
Median
24.38%
Q1
0.00%
Min
0.00%

ACI’s Dividend Payout Ratio of 30.78% is within the typical range for the Grocery Stores industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

SFM

0.00%

Grocery Stores Industry

Max
4,966.68%
Q3
30.78%
Median
24.38%
Q1
0.00%
Min
0.00%

SFM has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.

ACI vs. SFM: A comparison of their Payout Ratio against the Grocery Stores industry benchmark.

Dividend at a Glance

SymbolACISFM
Dividend Yield (TTM)2.46%0.00%
Dividend Payout Ratio (TTM)30.78%0.00%

Valuation

Price-to-Earnings Ratio

ACI

13.26

Grocery Stores Industry

Max
35.78
Q3
21.80
Median
18.09
Q1
11.47
Min
8.82

ACI’s P/E Ratio of 13.26 is within the middle range for the Grocery Stores industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

SFM

35.81

Grocery Stores Industry

Max
35.78
Q3
21.80
Median
18.09
Q1
11.47
Min
8.82

At 35.81, SFM’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Grocery Stores industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.

ACI vs. SFM: A comparison of their P/E Ratio against the Grocery Stores industry benchmark.

Forward P/E to Growth Ratio

ACI

17.35

Grocery Stores Industry

Max
4.43
Q3
3.62
Median
2.13
Q1
0.83
Min
0.05

ACI’s Forward PEG Ratio of 17.35 is exceptionally high for the Grocery Stores industry. This suggests its stock price is very high relative to its expected earnings growth, signaling significant overvaluation risk.

SFM

2.82

Grocery Stores Industry

Max
4.43
Q3
3.62
Median
2.13
Q1
0.83
Min
0.05

SFM’s Forward PEG Ratio of 2.82 is within the middle range of its peers in the Grocery Stores industry. This suggests a reasonable balance between the stock’s price and its expected growth, aligning with sector valuation norms.

ACI vs. SFM: A comparison of their Forward PEG Ratio against the Grocery Stores industry benchmark.

Price-to-Sales Ratio

ACI

0.16

Grocery Stores Industry

Max
0.69
Q3
0.45
Median
0.28
Q1
0.22
Min
0.14

In the lower quartile for the Grocery Stores industry, ACI’s P/S Ratio of 0.16 indicates its revenue is valued more conservatively than most of its peers. This could present a compelling opportunity if the market has overlooked its sales-generating capabilities.

SFM

1.97

Grocery Stores Industry

Max
0.69
Q3
0.45
Median
0.28
Q1
0.22
Min
0.14

With a P/S Ratio of 1.97, SFM trades at a valuation that eclipses even the highest in the Grocery Stores industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.

ACI vs. SFM: A comparison of their P/S Ratio against the Grocery Stores industry benchmark.

Price-to-Book Ratio

ACI

3.75

Grocery Stores Industry

Max
5.54
Q3
4.47
Median
2.48
Q1
1.04
Min
0.41

ACI’s P/B Ratio of 3.75 is within the conventional range for the Grocery Stores industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.

SFM

12.42

Grocery Stores Industry

Max
5.54
Q3
4.47
Median
2.48
Q1
1.04
Min
0.41

At 12.42, SFM’s P/B Ratio is at an extreme premium to the Grocery Stores industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.

ACI vs. SFM: A comparison of their P/B Ratio against the Grocery Stores industry benchmark.

Valuation at a Glance

SymbolACISFM
Price-to-Earnings Ratio (P/E, TTM)13.2635.81
Forward PEG Ratio (TTM)17.352.82
Price-to-Sales Ratio (P/S, TTM)0.161.97
Price-to-Book Ratio (P/B, TTM)3.7512.42
Price-to-Free Cash Flow Ratio (P/FCF, TTM)16.8532.68
EV-to-EBITDA (TTM)7.5819.94
EV-to-Sales (TTM)0.332.15