Comparing SFS’s Stock Market Performance to Its Peers’
SFS outperformed peers in 2015
Smart & Final Stores (SFS) was first listed in September 2014. On May 27, 2016, Smart & Final Stores’ market capitalization stood at $1.2 billion at a stock price of $15.70.
The company delivered an above-average performance in the stock market during 2015. Its stock rose by 14% during the year. This was better than the performances of its organic and natural food retailing peers Whole Foods Market (WFM) and Sprouts Farmers Market (SFM), which saw their stock prices fall by 33% and 25%, respectively. It was also better than the performance of the S&P 500 index, which fell by 2% in 2015. However, Kroger (KR) delivered a stronger performance than SFS, rising by more than 30% in 2015.
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2016, however, hasn’t been a fruitful year for SFS so far. The company’s stock had fallen by 13% as of May 27, 2016, and it was trading 17% lower than its 52-week high on the day.
However, most of the company’s retail food peers have had the same fates in the current year. Costco’s (COST) stock price has fallen by 7%, while Kroger’s has fallen by 13% year-to-date.
SFS doesn’t offer dividends
Smart & Final Stores currently doesn’t offer dividends to its shareholders. However, its peers Whole Foods Market, Kroger, Costco, and Walmart (WMT) do offer healthy dividends. The one-year forward dividend yields on Whole Foods’ and Kroger’s stocks were 1.8% and 1.3%, respectively, while Costco’s and Walmart’s forward dividend yields were 1.2% and 2.8%, respectively, on May 27, 2016.
Investors looking for exposure to Smart & Final Stores through ETFs can invest in the SPDR S&P Retail ETF (XRT) or the WisdomTree SmallCap Earnings ETF (EES). SFS has weights of ~0.26% and ~0.11%, respectively, in the above-mentioned ETFs.
Continue to the next article to compare the valuations of Smart & Final Stores and its peers.