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CAG vs SFM

CAG
Conagra Brands, Inc.
BEARISH
Price
$14.17
Market Cap
$6.78B
Sector
Consumer Defensive
AI Confidence
90%
SFM
Sprouts Farmers Market, Inc.
NEUTRAL
Price
$74.15
Market Cap
$7.01B
Sector
Consumer Defensive
AI Confidence
85%

Valuation

P/E Ratio
CAG
--
SFM
13.96
Forward P/E
CAG
8.34
SFM
12.6
P/B Ratio
CAG
0.83
SFM
5.07
P/S Ratio
CAG
0.61
SFM
0.8
EV/EBITDA
CAG
8.13
SFM
10.31

Profitability

Gross Margin
CAG
24.27%
SFM
39.03%
Operating Margin
CAG
10.57%
SFM
5.73%
Profit Margin
CAG
-0.39%
SFM
5.95%
ROE
CAG
-0.51%
SFM
38.44%
ROA
CAG
4.2%
SFM
11.0%

Growth

Revenue Growth
CAG
-1.9%
SFM
7.6%
Earnings Growth
CAG
39.0%
SFM
18.4%

Financial Health

Debt/Equity
CAG
0.9
SFM
1.39
Current Ratio
CAG
0.9
SFM
0.93
Quick Ratio
CAG
0.25
SFM
0.41

Dividends

Dividend Yield
CAG
9.88%
SFM
--
Payout Ratio
CAG
79.1%
SFM
0.0%

AI Verdict

CAG BEARISH

Conagra Brands (CAG) exhibits severe fundamental weakness, highlighted by a Piotroski F-Score of 2/9, indicating poor financial health. While the stock appears cheap on a Price-to-Book (0.83) and Forward P/E (8.34) basis, these metrics are offset by negative profit margins, negative ROE, and a critical liquidity shortage evidenced by a Quick Ratio of 0.25. The technical trend is completely bearish (0/100), and the stock is trading near its 52-week low following a multi-year decline. Despite a high dividend yield, the underlying deterioration in operational efficiency and growth makes the current valuation a potential value trap.

Strengths
Low Price-to-Book ratio (0.83) suggesting asset undervaluation
Low Forward P/E (8.34) relative to broader market
High dividend yield of 9.88% providing immediate income
Risks
Critical liquidity risk with a Quick Ratio of 0.25
Negative Profit Margin (-0.39%) and negative ROE (-0.51%)
Negative revenue growth (-1.90% YoY) indicating shrinking market share or demand
SFM NEUTRAL

SFM presents a stark divergence between strong fundamental profitability and severe technical decay. While the Piotroski F-Score of 6/9 indicates stable financial health and the ROE of 38.44% is exceptional, the stock has plummeted 53.7% over the last year. Valuation metrics (P/E 13.96, PEG 1.02) suggest the company is significantly undervalued relative to its growth, but liquidity concerns (Current Ratio 0.93) and aggressive insider selling temper the bullish case.

Strengths
Exceptional Return on Equity (ROE) of 38.44%
Attractive valuation with a PEG ratio of 1.02
Consistent track record of earnings beats over 25 quarters
Risks
Severe technical breakdown with a -53.7% 1-year price change
Weak short-term liquidity (Quick Ratio of 0.41)
Bearish insider sentiment with 20 sell transactions and 0 buys

Compare Another Pair

CAG vs SFM: Head-to-Head Comparison

This page compares Conagra Brands, Inc. (CAG) and Sprouts Farmers Market, Inc. (SFM) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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