Don’t Compare Sprouts to Whole Foods

Now that Sprouts Farmers Market (NASDAQ: SFM  ) is a publicly traded company, it's only natural for investors to want to compare the company's prospects to the gold standard of natural and organic grocery shopping, Whole Foods Market (NASDAQ: WFM  ) .

Fool contributor Steve Heller argues that investors who go down this route could run the risk of dismissing Sprouts as a "second rate" company compared to Whole Foods, and as a result, could be missing out on an interesting growth story.

The reason: Sprouts isn't trying to be the gold standard of natural and organic grocery shopping. Instead, it's trying to be the value leader in the natural and organic space. This distinction is key to understanding Sprouts' growth story, Steve argues.

Check out the video below to get the full story.

The grocery space is in the midst of the biggest paradigm shift since TV dinners became a staple for American households in the 1960s. Only those most forward-looking and capable companies will survive, and they'll handsomely reward those investors who understand the landscape. You can read about the 3 Companies Ready to Rule the future in The Motley Fool's special report. Uncovering these top picks is free today; just click here to read more.

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DocumentId: 2611888, ~/Articles/ArticleHandler.aspx, 8/31/2016 7:29:52 PM

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