Critical Comparison: BBB Foods (NYSE:TBBB) and Sprouts Farmers Market (NASDAQ:SFM)

BBB Foods (NYSE:TBBB) and Sprouts Farmers Market (NASDAQ:SFM) are both consumer staples companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, valuation, risk and earnings.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
BBB Foods	N/A	N/A	N/A
Sprouts Farmers Market	4.73%	28.24%	10.18%

Earnings and Valuation

This table compares BBB Foods and Sprouts Farmers Market”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BBB Foods	$2.49 billion	1.44	-$17.30 million	N/A	N/A
Sprouts Farmers Market	$6.84 billion	2.07	$258.86 million	$3.46	40.99

Sprouts Farmers Market has higher revenue and earnings than BBB Foods.

Institutional & Insider Ownership

8.4% of BBB Foods shares are owned by institutional investors. 1.1% 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 stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current recommendations for BBB Foods and Sprouts Farmers Market, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BBB Foods	0	5	3	0	2.38
Sprouts Farmers Market	0	8	3	0	2.27

BBB Foods presently has a consensus price target of $30.57, indicating a potential downside of 4.19%. Sprouts Farmers Market has a consensus price target of $115.40, indicating a potential downside of 18.63%. Given BBB Foods’ stronger consensus rating and higher possible upside, analysts clearly believe BBB Foods is more favorable than Sprouts Farmers Market.

Summary

Sprouts Farmers Market beats BBB Foods on 7 of the 10 factors compared between the two stocks.

About BBB Foods

BBB Foods Inc., through its subsidiaries, operates a chain of grocery retail stores in Mexico. It offers household cleaning, personal hyenine, cosmetics and beauty, pharmacy, and general merchandise products, as well as jellies and desserts, foods and drinks, pet supplies, coffee, tea, chocolates, breads, dry and frozen foods, snacks and sweets, and toilet papers and napkins. The company also provides branded, private label, and spot products. It serves low-to-middle income households through online channels. BBB Foods Inc. was incorporated in 2004 and is headquartered in Mexico City, Mexico.

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.