TR vs SFM

For growth investors, Sprouts Farmers Market, Inc.

(SFM) is the stronger pick with 14. 1% revenue growth year-over-year, versus 1. 3% for Tootsie Roll Industries, Inc. (TR). Sprouts Farmers Market, Inc. (SFM) offers the better valuation at 14. 7x trailing P/E (14. 0x forward), making it the more compelling value choice. Analysts rate Sprouts Farmers Market, Inc. (SFM) a "Buy" — based on 43 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, Sprouts Farmers Market, Inc.

(SFM) is the cheapest at 14. 7x versus Tootsie Roll Industries, Inc. at 30. 5x. On forward P/E, Sprouts Farmers Market, Inc. is actually cheaper at 14. 0x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Sprouts Farmers Market, Inc. wins at 0. 83x versus Tootsie Roll Industries, Inc. 's 1. 91x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, Sprouts Farmers Market, Inc.

(SFM) delivered a total return of +196. 8%, compared to +62. 3% for Tootsie Roll Industries, Inc. (TR). Over 10 years, the gap is even starker: SFM returned +198. 6% versus TR's +74. 1%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Tootsie Roll Industries, Inc.

(TR) is the lower-risk stock at -0. 03β versus Sprouts Farmers Market, Inc. 's 0. 17β — meaning SFM is approximately -781% more volatile than TR relative to the S&P 500. On balance sheet safety, Tootsie Roll Industries, Inc. (TR) carries a lower debt/equity ratio of 1% versus 139% for Sprouts Farmers Market, Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Sprouts Farmers Market, Inc.

(SFM) is pulling ahead at 14. 1% versus 1. 3% for Tootsie Roll Industries, Inc. (TR). On earnings-per-share growth, the picture is similar: Sprouts Farmers Market, Inc. grew EPS 41. 6% year-over-year, compared to 16. 1% for Tootsie Roll Industries, Inc.. Over a 3-year CAGR, SFM leads at 11. 2% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Tootsie Roll Industries, Inc.

(TR) is the more profitable company, earning 13. 7% net margin versus 5. 9% for Sprouts Farmers Market, Inc. — meaning it keeps 13. 7% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: TR leads at 14. 0% versus 7. 8% for SFM. At the gross margin level — before operating expenses — SFM leads at 37. 1%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, Sprouts Farmers Market, Inc. (SFM) is the more undervalued stock at a PEG of 0. 83x versus Tootsie Roll Industries, Inc. 's 1. 91x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Sprouts Farmers Market, Inc. (SFM) trades at 14. 0x forward P/E versus 22. 3x for Tootsie Roll Industries, Inc. — 8. 2x cheaper on a one-year earnings basis.

In this comparison, TR (0.

9% yield) pays a dividend. SFM does not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, Tootsie Roll Industries, Inc.

(TR) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β -0. 03), 0. 9% yield). Both have compounded well over 10 years (TR: +74. 1%, SFM: +198. 6%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Consumer Defensive sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

In terms of investment character: TR is a small-cap quality compounder stock; SFM is a small-cap deep-value stock. TR pays a dividend while SFM does not, making them suitable for different income and tax situations. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.