NAII vs WMT vs COST vs SFM

For growth investors, Natural Alternatives International, Inc.

(NAII) is the stronger pick with 14. 1% revenue growth year-over-year, versus 4. 7% for Walmart Inc. (WMT). Sprouts Farmers Market, Inc. (SFM) offers the better valuation at 15. 6x trailing P/E (14. 9x forward), making it the more compelling value choice. Analysts rate Walmart Inc. (WMT) a "Buy" — based on 64 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 15. 6x versus Costco Wholesale Corporation at 55. 4x. On forward P/E, Sprouts Farmers Market, Inc. is actually cheaper at 14. 9x. 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. 88x versus Walmart Inc. 's 4. 07x — 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 +207. 7%, compared to -81. 2% for Natural Alternatives International, Inc. (NAII). Over 10 years, the gap is even starker: COST returned +622. 8% versus NAII's -76. 8%. 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), Costco Wholesale Corporation (COST) is the lower-risk stock at 0.

10β versus Natural Alternatives International, Inc. 's 0. 76β — meaning NAII is approximately 664% more volatile than COST relative to the S&P 500. On balance sheet safety, Costco Wholesale Corporation (COST) carries a lower debt/equity ratio of 28% versus 139% for Sprouts Farmers Market, Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Natural Alternatives International, Inc.

(NAII) is pulling ahead at 14. 1% versus 4. 7% for Walmart Inc. (WMT). On earnings-per-share growth, the picture is similar: Sprouts Farmers Market, Inc. grew EPS 41. 6% year-over-year, compared to -85. 4% for Natural Alternatives International, 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.

Sprouts Farmers Market, Inc.

(SFM) is the more profitable company, earning 5. 9% net margin versus -10. 5% for Natural Alternatives International, Inc. — meaning it keeps 5. 9% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: SFM leads at 7. 8% versus -6. 7% for NAII. 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. 88x versus Walmart Inc. 's 4. 07x. 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. 9x forward P/E versus 49. 4x for Costco Wholesale Corporation — 34. 5x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for SFM: 9. 9% to $91. 00.

In this comparison, WMT (0.

7% yield), COST (0. 5% yield) pay a dividend. NAII, SFM do not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, Walmart Inc.

(WMT) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 11), 0. 7% yield, +501. 4% 10Y return). Both have compounded well over 10 years (WMT: +501. 4%, NAII: -76. 8%), 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: NAII is a small-cap quality compounder stock; WMT is a mega-cap quality compounder stock; COST is a large-cap quality compounder stock; SFM is a small-cap deep-value stock. WMT pays a dividend while NAII, COST, SFM do 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.