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Don’t Compare Sprouts to Whole Foods

Tuesday - 8/27/2013, 6:46am  ET

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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