Don't Compare Sprouts to Whole Foods

Now that Sprouts Farmers Market 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 .

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.

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The article Don't Compare Sprouts to Whole Foods originally appeared on Fool.com.

Fool contributor Steve Heller owns shares of Whole Foods Market. The Motley Fool recommends Whole Foods Market. The Motley Fool owns shares of Whole Foods Market. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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